North Carolina Supreme Court Rules Against Sales and Use Tax Distinction in Wisconsin Taxpayer’s Appeal

The Supreme Court of North Carolina ruled to uphold a sales tax assessment against a Wisconsin based printer, rejecting the taxpayer’s argument that they could not be subject to sales tax under the U.S. Supreme Court decision McLeod v. J.E. Dilworth Co. The 1944 ruling in McLeod created a clear distinction between sales tax and a use tax in interstate commerce, defining sales of goods that occurred outside of a state that were delivered into the state via common carrier as out of state sales that could not be subject to sales tax under the Commerce Clause.

Source: salestaxinstitute.com

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