Knowledge Center

Monday, January 02, 2017

HMB's Marilyn Wethekam Published in State Tax Notes "Board Sheds Light on Dark Horse Issues of 2017"

Factor Presence Nexus - The Unforeseen Consequences

By: Marilyn Wethekam
Originally published in State Tax Notes, Board Briefs, Jan. 2, 2017, pp. 99-118

Wethekam Over the last several years, at least six states have adopted and several more have proposed some form of a factor presence standard for determining the jurisdiction to impose an income tax. At least two additional states have adopted the standard for other business taxes. The main focus of those proposals has been on determining whether such standards pass constitutional muster, for example, whether they meet the due process standard of minimum connection/definite links and the commerce clause requirement of substantial presence. However, what appears to have been overshadowed by the constitutional questions are numerous administrative and tax policy issues that may not have been anticipated when those bright-line standards were enacted. Two recent California rulings illustrate the complexities of the implementation of the factor presence nexus standards...

Click here to read the full article

MARILYN A. WETHEKAM is a partner at Horwood Marcus & Berk, Chartered in Chicago and a member of the State Tax Notes 2017 Advisory Board. Ms. Wethekam co-chairs the firm's nationally recognized multistate State and Local Tax practice. She has a national SALT practice representing multistate and multinational corporations in all areas of state tax.

Tax Analysts is a non-profit organization which is a leading provider of tax news and analysis for the global community, reaching more than 150,000 tax professionals in law and accounting firms, corporations, and government agencies. Visit for more information.

(C) Tax Analysts 2017. Reprinted with permission.


NOTICE: Emailing an attorney shall not and does not create an attorney-client relationship between the attorney and users of this web site or any other party whatsoever. An attorney-client relationship is ONLY established through a written engagement, and only where doing so would comply with all applicable laws and ethical rules.

CONFIDENTIAL INFORMATION: Transmission of information on-line, over email, or through any electronic means can be unstable, unreliable and insecure. You should not send information or facts via e-mail relating to your legal problem or question. If you do not have an existing attorney-client relationship, your e-mail may not be privileged or confidential.

By clicking 'OK' below, you are agreeing to the terms of this web site.

Please fill out the form below and we'll send an email out about this page to a recipient of your choice.

Copy: Check here if you would like a copy of the email.