Indiana Lawsuit Results in Suspension of Sales Tax Collection Statute
We're excited to report an important positive development in the Hoosier state. Earlier this week, in response to a Complaint we filed with our TruST partner association NetChoice, the Indiana Department of Revenue acknowledged that it has no authority under current law to enforce its new “economic presence” nexus statute (House Enrolled Act 1129). This litigation challenging the law’s constitutionality is now pending in state Superior Court in Indianapolis. Under the new law, which went into effect on July 1, 2017, retailers with more than $100,000 in Indiana sales or 200 transactions annually with Indiana customers would be required to collect and remit Indiana sales tax. Before the law took effect, in late June Brann & Isaacson filed suit on our behalf alleging that the statute violates the long-standing physical presence “substantial nexus” requirement for state sales taxes under Quill Corp. v. North Dakota. Click Read More below for additional detail.