A win for the states is in the works. A bill limiting states’ power to chase tax revenue from out-of-state firms is not likely to pass. The legislation has been approved by a House committee, but is not expected to get much farther.
The planned measure would bar states from taxing businesses unless they’re domiciled there or have a physical presence in that state for at least 15 days during the tax year. Sending solicitors into a state wouldn’t trigger tax even if they are present there for 15 days or more, as long as the goods are shipped from an out-of-state location. Although the measure has garnered strong support from business interests, concerns of state tax administrators about lost revenue are enough to torpedo it.
The current Nexus laws are much more in favor of the states, especially since they wrote them.