Recent Gross Receipts Tax Cases Signal Aggressive Local Governments
State Tax Notes
As we often hear, many cities and counties across the country continue to experience revenue shortfalls. Sales tax collections remain below historical averages while online shopping continues to flourish with fewer and fewer sales tax dollars generated by bricks-and-mortar retailers. One way local governments are combating revenue losses and concomitant budget issues while maintaining services at existing levels is to pursue increasingly aggressive nexus interpretations in imposing their business license or privilege taxes on out-of-state vendors.
The complete article first appeared in State Tax Notes on March 5, 2018.