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73 STAT.] PUBLIC LAW 86-272-SEPT555 . 14, 1959 SEC. 2. There are hereby authorized to be appropriated such sums, in addition to the sum of $6,339,000 authorized to be appropriated for the Crooked River Federal reclamation project in section 5 of the Act of August 6, 1956 (70 Stat. 1058), as may be required to carry out the purposes of this Act.
Jul 2, 2019 · The chief limitation on state nexus is a federal law, Public Law 86-272, which prohibits states from taxing income arising from the sale of tangible property into the state by a company whose only activity in that state is the (remote) solicitation of sales.
P.L. 86-272 does not apply to services or intangible personal property. A foreign corporation that conducts business activity in New Jersey that exceeds the protection of Public Law 86-272 is subject to the Corporation Business Tax as measured by the net income of the corporation.
Apr 19, 2006 · The court also stated that New York’s use of unitary apportionment for the purpose of assessing a franchise tax did not violate P.L. 86-272 because the franchise tax was not based on net income. It described the relationship between the unitary group’s income tax and New York’s franchise tax in the following way.
Apr 5, 2023 · Income Tax. Nexus. SALT. Public Law 86-272 was originally enacted by Congress in 1959. The main purpose of this legislation is to prevent states from imposing a net income tax on any income derived out of interstate commerce when the only business activity a company has within a state is the solicitation of orders of tangible personal property.
In conclusion, the plain meaning of Public Law 86-272 is that its limitations apply only to taxes measured by net income. Since the Tennessee franchise tax is measured by a taxable entity’s net worth and not by net income, Public Law 86-272 does not impose any restrictions with respect to the application of the franchise tax, even in ...
Public Law 86 -272 Not Applicable to Franchise Tax As previously discussed in Chapter 3 of this manual, taxpayers whose only business activity is the solicitation of orders for tangible personal property, which are approved and delivered from locations outside the state, are exempt from the excise tax. However, such taxpayers are not
