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New Jersey Tax Court Backs Internet Sales Rules Limiting P.L. 86-272 Shield
Original: New Jersey Tax Court Upholds MTC-Based Internet Rules Related to P.L. 86-272 Protection
The New Jersey Tax Court has upheld state rules based on the Multistate Tax Commission's guidance that limit the protection federal law P.L. 86-272 offers to companies selling over the internet. The decision means remote online sellers may face New Jersey income tax obligations even when their in-state activity was previously considered protected. Tax practitioners are watching closely, as the ruling could influence how other states treat internet commerce under the longstanding federal statute.
Why now: The ruling affects how multistate online sellers are taxed and could shape state tax exposure nationwide
New Jersey Tax CourtMultistate Tax CommissionP.L. 86-272
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