| Abstract: | One of the most contentious issues involving federal, state,and local relations today is Internet taxation. Internet taxationis a significant battleground because it involves issues ofgreat import to federalism, including state and local autonomyand revenue adequacy. Since the U.S. Supreme Court's 1992 decisionin Quill v. North Dakota, the taxability of online transactionshas been governed by the court's physical presence nexus rule.This nexus rule has recently been called into question by variousorganizations, corporations, and elected officials. Proposalsto alter the nexus rule abound from various sources. This articleexamines the roles played by these various actors in the Internettaxation debate and explores the potential implications of changesto the nexus for federalism and intergovernmental relations. |
