More on States Exporting Tax Burden to Out-of-State Businesses

March 25, 2008

An excellent article appeared yesterday in the Asbury Park Press on the dangers of “economic nexus”—the practice of states imposing taxes on businesses that have no employees or property within the state. An excerpt from “Revenuers get aggressive” by Jason Method:

In 2001, using the same nexus theory, Los Angeles County, Calif., unsuccessfully attempted to force the company that owns DirecTV to pay property taxes on its satellites in orbit.

But some out-of-state business owners say New Jersey has become so aggressive that the tax bills have crossed over to the absurd.

Closer to home, New Jersey in 2003 sent a $15,000 corporate tax bill to a software developer in South Carolina, six years after the developer sold a $695 computer program to an Atlantic City casino.

Carey J. “Bo” Horne, 60, of Seneca, S.C., said he was stunned when he got the tax bill from New Jersey. The home-based software developer never even visited the state to do business.

Read the rest of the article here.

Read about our efforts to have the U.S. Supreme Court settle this issue here, a recent congressional bill that has been introduced to stop these destructive state practices, and information from a recent hearing on the bill, detailing a story of truckers being shaken down by tax collectors on the state line.

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