Texas Comptroller Defies the Laws of Physics

Overview


Arthur Rosen and Nicole Ford wrote this bylined article criticizing a Texas administrative law judge’s opinion that an out-of-state company had tax nexus with Texas through downloaded software licensed to Texas customers. “This opinion defies the rule set forth by the U.S. Supreme Court in Quill v. North Dakota, which unequivocally holds that an out-of-state entity must have physical presence in a state before that state may constitutionally subject the entity to the state’s sales and use tax laws,” the authors wrote, adding that the state’s tax authority “should be embarrassed” by the decision, which “blatantly contradicts the clear mandate of Quill.”