The Pennsylvania Commonwealth Court held on September 9 that out-of-state merchants on an online marketplace lacked due process nexus with Pennsylvania for both sales and use tax and personal income tax purposes. Further, the court ruled, the state could not compel the merchants to answer a detailed nexus questionnaire, and the merchants did not have to wait for a tax assessment before challenging the Department’s taxing authority. [Online Merchants Guild v. Secretary of Revenue, Pa. Commw. Ct., No. 179 M.D. 2021, 9/9/22]
Source PwC
