Tennessee Appeals Court holds out-of-state book distributor had sufficient nexus, liable for sales and use taxes

February 2012

Overview

The Tennessee Court of Appeals held that an out-of-state book distributor, with no physical location or employees in Tennessee, was subject to sales and use taxes. Specifically, the Court found that substantial nexus existed where local teachers and schools created a marketing and distribution mechanism within the State. [Scholastic Book Clubs, Inc. v. Farr, No. M2011-01443-COA-R3-CV, 1/27/12].

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