Subject Matter Experts

Dillon Tax Consulting provides tax advisory and compliance services and solutions to companies across all industries, ranging in revenue size from several hundred thousand dollars to multi-billion dollars. We are your subject matter experts regarding the following State & Local Tax matters:

  • Sales & Use Tax
  • Transaction Tax
  • Admissions/Meals Tax
  • Business License Tax
  • Gross Receipts Tax
  • Use & Occupancy Tax
  • Income/Franchise Tax
  • Capital Stock Tax
  • Personal Property Tax

Blog: Dillon Tax Consulting

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“What’s A Remote Seller To Do?” you ask. “Register and Collect,” states say.

by Michael T. Dillon Esq., Dillon Tax Consulting LLC
7/29/2015

Ohio is the most recent of states to have enacted a click-through nexus provision.  To date, 24 other states have adopted (by statute or otherwise) some form of either an affiliate nexus or a click-through nexus provision.

Under an affiliate nexus provision, a rebuttable presumption of nexus is typically established for an out-of-state seller that has an in-state affiliate selling similar products, storing inventory, or engaging in other activities that potentially assist the out-of-state entity in building or maintaining a marketplace in the state.  Under a click-through nexus provision, a rebuttable presumption of nexus is established for an out-of-state seller ...

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Try, Try Again ... Illinois Imposes a New and “Improved?” Affiliate Nexus Law

Michael T. Dillon, Dillon Tax Consulting LLC
2/10/2015

Effective January 1, 2015, out-of-state retailers are once again presumed to have sales tax nexus in Illinois if they satisfy the following criteria:

  • the out-of-state retailer has a contract with a person in Illinois;
  • under the contract, the person in Illinois refers potential customers to the retailer and the retailer pays to the person in Illinois a commission or other consideration based on the sale of tangible personal property by the retailer;
  • the person in Illinois provides to the potential customers a promotional code or other mechanism that allows the retailer to trace the purchases made by these customers;
  • the ...
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Recent Blog Articles

Recent Blog Articles

Does the Sales Tax Nexus “Physical Presence” Standard Exist?

Does the Sales Tax Nexus “Physical Presence” Standard Exist?

2/22/2017 12:00:00 AM EST
3 months ago

U.S. Supreme Court Declines to Review Florida Sales Tax Imposed on Out of State Inventory Delivered to Out of State Customers

States Are Looking for Unregistered / Unpaid Sales Tax . . . Are You at Risk?

States Are Looking for Unregistered / Unpaid Sales Tax . . . Are You at Risk?

2/9/2017 12:00:00 AM EST
3 months ago

With New Years Day comes New Years Resolutions, some of which we keep, some of which we don’t, and some of which we fail to make because we aren’t even aware that one is needed.  The same holds true for your business.  Often times, “We Don’t Know What We Don’t Know”.  It’s my calling to educate companies about this, with regard to multistate sales tax, nexus and ways to minimize audit risk for your company.  Because with this New Year, state auditors are looking for your company as you read this.

Sales Tax on Cloud-computing: Rulings Also Mean More Uncertainty and Unpredictability

Sales Tax on Cloud-computing: Rulings Also Mean More Uncertainty and Unpredictability

12/13/2016 12:00:00 AM EST
5 months ago

A number of sales tax decisions in Tennessee, Indiana and Illinois serve to remind us all of the uncertainty involving cloud computing transactions, and the importance to seek guidance from tax practitioners regarding your specific facts.  While each taxpayers’ facts involved the access to and/or provision of cloud-based services, the transactions for each were unique, as were the States and their analysis / conclusions.  One state decided that the taxpayer’s cloud-computing transactions were taxable, whereas the other states determined that the cloud-based transactions were not taxable sales.  These rulings, while pertinent to the taxpayers at issue, only add to the uncertainty for taxpayers engaged in similar transactions, and enhance the unpredictability of tax treatment relating to cloud-based transactions, even in the same state.

Florida Sales Tax Case Presents Opportunity for Supreme Court to Revisit the Quill Nexus Standard

Florida Sales Tax Case Presents Opportunity for Supreme Court to Revisit the Quill Nexus Standard

11/8/2016 12:00:00 AM EST
6 months ago

In a petition filed with the Supreme Court of the United States on October 24, 2016, American Business USA Corporation (American Business) seeks a writ of certiori to review the judgment of the Supreme Court of Florida.  [American Business USA Corp. v. Florida Department of Revenue, U.S. Supreme Court, Dkt. 16-567, petition for certiorari filed October 24, 2016]  In its petition, American Business asks whether a state can “collect sales tax on out-of-state property ordered over the internet for out-of-state delivery by relying on this (Supreme) Court’s decision in Quill Corp. v. North Dakota, 504 U.S. 298 (1992) and the state’s connection to the corporation that accepts the order and arranges the sale, or does such a tax violate the Due Process Clause and the dormant Commerce Clause of the United States Constitution by imposing a sales tax on the out-of-state transfer of tangible personal property?”  The granting a writ of certiorari by the Supreme Court means that at least four of the justices have determined that the circumstances described in the petition are sufficient to warrant review by the Court.

Texas Court says the “Essence of Transaction” involving a Provider’s technology platform is not “Data Processing”

Texas Court says the “Essence of Transaction” involving a Provider’s technology platform is not “Data Processing”

5/10/2016 12:00:00 AM EDT
1 years ago

In a decision involving the true object, or  “essence of the transaction” test, the Texas court of appeals upheld the trial court’s decision in favor of the taxpayer refund claim for sales tax assessed on the provision of bill pay services.  In Hegar v. CheckFree Services Corporation, NO. 14-15-00027-CV (Tex. Ct. App., April 19, 2016), the Court of Appeals affirmed the trial court’s judgment in favor of CheckFree, awarding it a refund of sales tax paid on bill pay services provided to banks.  CheckFree contracted with several banks to provide bill pay services through the banks’ on-line banking services to the banks’ customers.  On audit, the Comptroller determined that CheckFree provided taxable data processing services to the banks, under Texas Code Section 151.0035 and 34 Tex. Admin. Code §3.330(a)(1).

Cloud-based Services: “The Wild West” and the Cavalry

Cloud-based Services: “The Wild West” and the Cavalry

11/8/2015 12:00:00 AM EST
1 years ago

The New York Department of Taxation and Finance (Department) recently issued an Advisory Opinion providing their interpretation of yet another Taxpayer's provision of Software As a Service (SAaS).  In TSB-A-15(36)S, Taxpayer sought an Advisory Opinion from the Office of Counsel for the Department, as to the application of New York sales tax to its provision of a cloud-based software platform service delivered through four key offerings: (1) Line-Item IT billing, (2) budgeting and financial reporting, (3) service costing, and (4) business unit planning.  [TSB-A-15(36)S, New York State Department of Taxation and Finance, Sales Tax Advisory Opinion (September 18, 2015)]   The Line Item IT billing service enables the customer to upload data via transfer protocol to Taxpayer’s platform.  Taxpayer is then responsible for processing the data using its platform, using pre-set customer rules.  Taxpayer then provides the customer with information (and access thereto) about the cost of each function performed by the IT department.  The other three hosted services enable the customer to access and use the Taxpayer’s software platform for budgeting and financial reporting, comparing competitor costs and updating IT service costs in its service catalog, and conduct business unit planning at the product, service, application, and business unit by plugging “what if” scenarios into a forecasting engine.

“What’s A Remote Seller To Do?” you ask. “Register and Collect,” states say.

“What’s A Remote Seller To Do?” you ask. “Register and Collect,” states say.

7/29/2015 12:00:00 AM EDT
1 years ago

Ohio is the most recent of states to have enacted a click-through nexus provision.  To date, 24 other states have adopted (by statute or otherwise) some form of either an affiliate nexus or a click-through nexus provision.

Under an affiliate nexus provision, a rebuttable presumption of nexus is typically established for an out-of-state seller that has an in-state affiliate selling similar products, storing inventory, or engaging in other activities that potentially assist the out-of-state entity in building or maintaining a marketplace in the state.  Under a click-through nexus provision, a rebuttable presumption of nexus is established for an out-of-state seller that enters into an agreement with an in-state seller who, for consideration, refers potential customers to the out-of-state seller.  This referral typically occurs via a web link on the in-state seller’s website.

The Quill ‘Physical Presence’ Standard – A “Perfect Storm” Brewing

The Quill ‘Physical Presence’ Standard – A “Perfect Storm” Brewing

3/15/2015 12:00:00 AM EDT
2 years ago

Ever since, and even before, the U.S. Supreme Court’s landmark 1992 decision in Quill Corp. v. North Dakota, in which it affirmed the Commerce Clause ‘physical presence’ standard for sales tax nexus, Congress has continually grappled with the increasing sales tax revenue shortfalls and perceived unfair advantage that online and mail-order retailers have over brick and mortar retailers.  The ‘physical presence’ standard affirmed in Quill currently bars states from imposing sales tax compliance obligations on out-of-state retailers who lack a ‘physical presence’ with the state.