‘Cookies’ Don’t Trigger Sales Tax, Massachusetts Tax Board Finds

Massachusetts can’t impose tax duties on a California online seller under the state’s “cookie nexus” rule for periods prior to the U.S. Supreme Court’s ruling in South Dakota v. Wayfair, the state Appellate Tax Board ruled.

The board granted summary judgment to U.S. Auto Parts Network Inc. and abated the Massachusetts Department of Revenue’s $60,000 sales tax assessment dating to Oct. 1, 2017. The board ruled U.S. Auto Parts’ use of cookies—small chunks of data placed on a user’s computer while web surfing—didn’t constitute “physical presence” in Massachusetts for tax purposes, negating any duty to remit taxes to the ...