Past, Present and Future of Public Law 86-272
Public Law 86-272 was enacted in 1959 to protect taxpayers from state income taxes when their sole activity in the state is limited to soliciting the sale of tangible personal property where the order is accepted and fulfilled from outside the state.
State tax authorities have been contesting this federal law ever since passage. Due to the rise of the digital economy and state pushback, taxpayer protection under P.L. 86-272 has been steadily eroding. The Multistate Tax Commission (MTC) recently adopted a revision to the interpretation of P.L. 86-272, whereby a business could lose protection, by solely engaging with customers through the internet.
Viewers Will
- Understand the history of P.L. 86-272;
- Explore when a business can rely on P.L. 86-272;
- The effects the digital economy has had on P.L. 86-272; and,
- How the Multistate Tax Commission’s recent restatement on P.L. 86-272 eliminates many of its protections and will lead to taxpayers having an ever-expanding nexus footprint.
