Unanswered Questions: New Jersey Tax Court’s Decision on Corporation Business Tax Nexus Rules

• The New Jersey Tax Court’s decision in H & M Bay, Inc. v. Dir., Div. of Taxation raises questions about the state’s application of Corporation Business Tax (CBT) nexus rules
• The case involved a Maryland-based freight-forwarder disputing a CBT assessment of $7,700
• The taxpayer argued it was not subject to tax due to lack of nexus in New Jersey and de minimis New Jersey-sourced receipts
• The Division of Taxation argued the taxpayer had nexus in New Jersey due to coordinating freight deliveries in the state
• The Tax Court ruled that the taxpayer was not protected by Public Law 86-272 and could not determine if the taxpayer exercised its corporate franchise in New Jersey

Source: aprio.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.