Co-authored by Michael Benison, Summer Associate.
Move over, South Dakota v. Wayfair Inc. During the long debate over the U.S. Supreme Court's physical presence standard for state sales taxes, a quiet revolution in state corporate income taxes has been taking place — the shift to market-based sourcing for services income. By the early 2000s, only a smattering of states had adopted market-based sourcing; by 2018, that number has grown to include more than half of the states. Now that the Supreme Court has resolved the physical presence standard in its recent Wayfair decision, bringing with it new nexus standards for state taxes, will market-based sourcing be the next state tax debate?
Click here to read the full Law360 article that contains further insights from Gabby and Michael Benison, a summer associate at Ropes & Gray.
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