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West Virginia imposes sales tax on service provider due to presence of in-state independent contractors

The chief administrative law judge (ALJ) of the West Virginia Office of Tax Appeals recently ruled that independent contractors performing work within the state on behalf of a company with no physical presence in West Virginia created substantial nexus for the company. In ruling for the tax commissioner, the ALJ relied on prior U.S. Supreme Court rulings in this area to determine that sufficient nexus was created by the independent contractors’ activities and the tax assessed by West Virginia was constitutional under the dormant Commerce Clause.

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