Bradley Partner Brett Carter Quoted in Westlaw Journal Computer & Internet on Response to J.C. Penney Online Sales Tax Refund Case

Bradley attorney Brett Carter was quoted in the Westlaw Journal Computer & Internet on the Iowa High Court’s decision to dismiss a case against J.C. Penney under the Streamlined Sales and Use Tax Act (SSUTA). In Bass v. J.C. Penney Co. Inc., the court ruled that the state’s collection of taxes from online and other retailers does not create a private cause of action for consumers seeking refunds for overpayment.

“The decision really captures one of the underlying purposes of the Streamlined Tax Act to allow states to retain their sovereignty in the administration of each of their tax laws,” said Carter.

He explained that Iowa's regime allows consumers to seek refunds directly from the state, which is not a uniform practice in jurisdictions across the country. Depending on the state, retailers may also still have exposure if there is an independent cause of action under common law or another statute.

“Thus, while retailers are definitely pleased with this outcome, there remains a great deal of variety from state to state that will require them to consider the laws of each state in determining how to respond to a request for a refund of sales tax,” Carter added.

The complete article, “J.C. Penney Defeats Online Sales Tax Refund Case in Iowa,” appeared in the Westlaw Journal Computer & Internet on June 21, 2016. (login required)