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SALT top stories of 2016

While 2016 saw its fair share of important SALT developments, this year may best be remembered as a time in which many fundamental issues were set up for dynamic resolution in the coming year. For example, on the remote seller nexus front, while federal legislation on the subject failed to advance this year, many states took matters into their own hands by enacting legislation and inviting litigation at the state level to address how to require remote sellers to collect and remit sales and use tax. Courts and legislatures addressed the ability of states to subject businesses with a lack of physical presence to entity-level taxes imposed by Ohio and Nevada.

Based on these developments, consensus is beginning to build toward a judicial or Congressional determination, which could come as early as next year, on the power of a state to subject out-of-state businesses to all types of taxation that may eviscerate the historic Quill physical presence standard set forth by the U.S. Supreme Court.