New Jersey Supreme Court Rejects Physical Presence Nexus Standard In “Lanco Inc. V. Director, Div. Of Taxation”

• Posted by Geoffrey G. Gussis on January 12th, 2007


• Filed in Tax & Benefits

Someone in New Jersey may be looking for money from your company in the near future - and don’t blame it on InhouseBlog (we just live here).  So even if you haven’t taken a ride on our scenic turnpike (Exit 9 - holla), you may want to have your bean-counters review the New Jersey Supreme Court’s recent Lanco decision:

"The potentially broad scope of the opinion may result in all out-of-state companies being subject to the CBT—despite their lack of physical presence in New Jersey. The types of activities that could subject companies to the CBT based on the broad scope of the Lanco decision include:

* Providing financial services to New Jersey customers;

* Licensing franchises or intangibles for use with respect to products sold in New Jersey to unrelated parties;

* Licensing software for use in New Jersey; or

* Selling digital products or providing remote services to consumers located in New Jersey."

Link: Sutherland
Asbill & Brennan - United States - New Jersey Supreme Court Rejects
Physical Presence Nexus Standard In "Lanco Inc. V. Director, Div. Of
Taxation" from Mondaq (free registration required).