Supreme Court Trumps Quill

PDF/Printer Friendly Version In its highly anticipated opinion in South Dakota v. Wayfair, issued yesterday, the United States Supreme Court, by a 5-4 majority, overruled its prior decision in Quill Corp. v. North Dakota, which had held that a vendor must have a physical presence in a state to allow a state to impose a sales tax collection obligation on the vendor. The opinion held that the physical presence rule of Quill was unsound and incorrect and detailed the flaws in Quill. The Court stated that Quill was wrongly decided in 1992, and that the Internet revolution since that time makes the decision even more egregious, noting the fact that Amazon has surpassed Walmart as the largest re

Ohio Income Tax Residency “Bright-Line” Law Changed

PDF/Printer Friendly Version Be aware of new statutory foot-faults that change presumption for 2018 Ohio tax returns Background on Case that eliminated Bright-Line test: In 2015, the Supreme Court of Ohio issued an opinion in Cunningham v. Testa, 144 Ohio St.3d 40, 2015-Ohio-2744, that essentially eliminated the benefits of Ohio’s bright-line residency test (domicile and residency will be used interchangeably in this document). We previously discussed the background of the case and Ohio’s bright-line residency test in our previous SALT Buzz dated May 1, 2016. In short, the Court held that the common law of domicile was still relevant for Ohio tax purposes, and merely meeting the elements o

Ohio Supreme Court Expands Interpretation of Where Manufacturing Begins

PDF/Printer Friendly Version The Ohio Supreme Court overruled the Tax Commissioner’s interpretation of where manufacturing begins in Lafarge N. Am., Inc. v. Testa, Slip Opinion No. 2018-Ohio-2047. At issue in the case was whether the purchase of fuel and repair parts for equipment used in Lafarge North America, Inc.’s (Lafarge) slag manufacturing process qualified for the manufacturing exemption provided in Ohio Revised Code 5739.02(B)(42)(g). The equipment (a bull dozer, front-end loaders and dump trucks) was used to rip slag from the “slag mountain,” crush the ripped slag, and transport the crushed slag to a screening plant. At the outset, the Tax Commissioner did not dispute that Lafarge

Ohio House Elects Ryan Smith To Fill Vacated Speaker’s Chair

PDF/Printer Friendly Version Today the Ohio House Representatives picked Rep. Ryan Smith (R-Bidwell) to fill the vacated Speaker’s position for the remainder of the year and remainder of the 132nd General Assembly. The election became necessary when, now former, Speaker Cliff Rosenberger resigned in mid-April. Ryan was sworn in shortly after the vote was taken. However, the official vote comes weeks later than interim caucus leader, Speaker Pro Tempore Kirk Schuring had intended after Rep. Smith could not secure support from fifty members of caucus, the threshold set by Rep. Schuring for a vote to be called. For months before Former Speaker Rosenberger’s unexpected resignation there had been

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