Tis the Season: eCommerce continues to grow as do the related tax issues

Retail & Consumer Products Quickbrief

eCommerce is quickly becoming a standard retail channel for an increasing number of retailers to reach their customers. Given how quickly the retail industry is evolving into a complex online, multichannel shopping model, many states are left trying to secure existing tax revenue streams using outdated statutes and regulations. As a result, many states are expanding the interpretation of 'doing business' within their jurisdictions through several methods, including agency nexus, controlled group nexus, and retailer notification requirements. Consequently, retailers should expect to see more states enact measures targeting the collection responsibilities of out-of-state retailers and may need to re-evaluate the nexus footprint of any online subsidiary or division.

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