Flashcards in Taxes: State & Local Taxation Deck (3)
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1
Taxes:
State & Local Taxation
Types
State & Local Taxation
Types
- Sales Tax
- Use Tax
- Property Tax
- Franchise Tax
- Excise Tax
- Unemployment Tax
2
Taxes:
State & Local Taxation
Jurisdiction
State & Local Taxation
Jurisdiction
Four Tests
1. business activity has substantial nexus in state
2. tax fairly apportioned
3. tax cannot discriminate against interstate commerce
4. tax must be fairly related to service state provides
Nexus does not exist if only:
- soliciting sales of tangible personal property that is shipped out side the state
- advertising
- determining reorder needs of customers
- furnishing autos to sales staff
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