Professor Shanske Comments for State Tax Notes

Professor Darien Shanske commented for State Tax Notes on an Ohio Supreme Court ruling concerning Ohio’s Commercial Activity Tax. In the decision, the court held that the nexus rules for this tax were not governed by the U.S. Supreme Court’s decision in Quill Corporation v. North Dakota. 

‘‘Though the taxpayer’s argument is plausible, the better legal argument prevailed,’’ said Shanske. ‘‘The Ohio Supreme Court, like virtually all other courts to consider the issue, justifiably limited the reach of Quill to the use tax context.  Furthermore, the Ohio Supreme Court was correct that the weight of current [U.S.] Supreme Court authority would distinguish a gross receipts tax like the CAT from a sales and use tax.’’ Bottom of Form

Darien Shanske is a Professor of Law at UC Davis. His academic interests include taxation, particularly state and local taxation, local government law, public finance, and political theory, particularly jurisprudence.