State of Wayfair: More States Expected to Apply Franchise Tax to Remote Sellers

Federal income tax law won’t get in the way of the Lone Star state’s effort to apply the franchise tax to remote sellers, and other states are likely to follow suit, a senior fellow with the Center on Budget and Policy Priorities tells Bloomberg Tax.

“That law (the Interstate Income Act of 1959) doesn’t apply to the Texas Franchise Tax or doesn’t appear to—so that’s the situation,” Michael Mazerov, senior fellow at the Washington think-tank, told Bloomberg Tax Dec. 21 in a phone interview.

Mazerov’s comments follow the ruminations of the Texas Comptroller’s Office, which is studying how to apply ...