State and local taxes impact almost every taxpayer. S.A.L.T developments in any one jurisdiction can be frequent and sometimes confusing. Where multiple jurisdictions are involved, staying current with state and local tax developments can be overwhelming for any taxpayer.
To assist you with staying current on a periodic basis, Baker Donelson's S.A.L.T. Select Developments will identify one or more recent state and local tax developments from North Carolina.
June 2025
New Jersey Finalizes Regulations Narrowing P.L. 86-272 Protections for Online Business Activities: New Jersey released final regulations on income tax nexus (N.J.A.C. 18:7-1.6 et. seq.). These regulations adopt portions of the Multistate Tax Commission's (MTC) guidelines on P.L. 86-272. P.L. 86-272 provides protection to companies engaged in certain sales solicitation activities in interstate commerce. New Jersey will now consider certain internet activities, such as providing post-sale assistance through email or placing cookies on a customer's computer that gather market research for sale to third parties, to exceed the protections of P.L. 86-272. The MTC and the states have been expanding income tax nexus post-Wayfair. Wayfair broadened nexus for sales and use taxes. There will be significant litigation over the scope of income tax nexus in coming years as states broaden the reach of income tax. The U.S. House passed restrictions on states' ability to expand nexus in the context of P.L. 86-272 in the Budget Reconciliation Bill. However, the Senate version does not contain this provision.
* Baker Donelson professional admitted to the practice of law in Michigan and Virginia; Maryland bar application pending.