The Commonwealth Court of Pennsylvania recently held in Online Merchants Guild v. Hassell that the Pennsylvania Department of Revenue failed to provide sufficient evidence that non-Pennsylvania businesses selling merchandise through third-party online fulfillment services had sufficient contacts with Pennsylvania such that the Department could mandate out-of-state businesses to collect and remit sales tax. The court highlighted that the non-Pennsylvania businesses’ connections to Pennsylvania were limited to the storage of merchandise by these Fulfillment Services in their Pennsylvania warehouses.
Sales Tax Ripples from the Keystone State to the Golden State – Impact of Pennsylvania’s Online Merchants Guild Decision on California Sales Tax
