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Taxing Colonel Sanders: Re-Examining Constitutional Nexus Through The Lens Of Kfc V. Iowa, James F. Murtha

Western New England Law Review

Over twenty years ago, the Supreme Court of the United States decided that an entity must have a “physical presence” within a state before that state’s taxing authority can require the entity to pay state taxes. Since this physical presence requirement was created, a deep divide among state courts has shaped a confusing landscape surrounding two issues with the requirement. First, the states disagree on what constitutes physical presence within a state. Some state courts have held that mere economic presence in a state is sufficient for a state to assert its tax jurisdiction. Second, the states disagree on whether …