State Tax Nexus.

• Author: Laffie, Lesli S.

Senators Judd Gregg (R-NH) and Herb Kohl (D-WI) have introduced a bill to provide jurisdictional standards for the imposition of state and local tax obligations on interstate commerce. The "New Economy Tax Simplification Act" is intended to codify the Supreme Court's decision in Quill Corp., 504 US 298 (1992), and would prohibit a state from imposing a business activity tax or a duty to collect and remit sales or use tax on any entity not having a substantial physical presence in that state.

The following would not establish a substantial physical presence:

* Solicitation of orders approved and fulfilled outside the state.

* Presence of intangible personal property in the state.

* Maintenance of an Internet-accessible site.

* Processing of orders by a site on a computer located in the state.

* Use of a service provider for transmitting communications.

* Affiliation with a person in the state (other than an agent).

* Use of an...