Cases & Deals

Internet-based retailer establishes "no nexus" exists with State of Texas

Clients Internet-based retailer

Jones Day helped an out-of-Texas retailer establish that it did not have substantial nexus with Texas. The Texas Comptroller had preliminarily concluded that the internet-based retailer had nexus with Texas for both sales tax and margin tax on the basis of certain contacts with Texas. The Comptroller was demanding returns and payment of tax for the prior seven years. Jones Day intervened and after a series of submissions and presentations ultimately led the Comptroller to the determination that "no nexus" existed. No returns or payments were ultimately required.

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