A North Carolina court tossed a $3 million sales tax assessment against a Wisconsin-based commercial printer, finding the assessment conflicted with the Commerce Clause of the federal Constitution.
A North Carolina Superior Court judge rejected on Wednesday the state Department of Revenue’s view that Quad Graphics, Inc. had a sales tax duty on nearly three years of transactions involving printed materials shipped into the state by common carrier. The department’s assessment, the court ruled, conflicted with the U.S. Supreme Court’s holding in McLeod v. J.E. Dilworth Co., which bars sales tax liability on Commerce Clause grounds when out-of-state goods ...