U.S. Supreme Court Denies Certiorari to Lanco and MBNA "Economic Nexus" Cases

 

 

[21271]

 

June 18, 2007

TO: ADVISER DISTRIBUTOR TAX ISSUES TASK FORCE No. 9-07
TAX MEMBERS No. 26-07     RE: U.S. SUPREME COURT DENIES CERTIORARI TO LANCO AND MBNA “ECONOMIC NEXUS” CASES

 

The United States Supreme Court has denied certiorari (docket attached) to Lanco, Inc. v. Director, Division of Taxation [1] and Commissioner v. MBNA America Bank, N.A. [2].  The MBNA case was docketed as FIA Card Services, N.A. v. WV Tax Comm’r.  Both Lanco and MBNA held that a state may constitutionally impose an income tax on a corporation that lacks physical presence in the state.  These cases concluded that the physical presence standard announced by the U.S. Supreme Court in Quill Corp. v. North Dakota [3] is limited to sales and use taxes.

 

Lisa Robinson
Associate Counsel

 

Attachment

 

endnotes

 [1] See Institute Memorandum (20482) to Adviser Distributor Tax Issues Task Force No. 10-06 and Tax Members No. 37-06, dated October 12, 2006.

 [2] See Institute Memorandum (20605) to Adviser Distributor Tax Issues Task Force No. 12-06 and Tax Members No. 41-06, dated November 22, 2006.

 [3] 504 U.S. 298 (1992).