Taking Tax Due Process Seriously: The Give and Take of State Taxation

53 Pages Posted: 10 Feb 2016 Last revised: 18 Oct 2018

See all articles by Hayes Holderness

Hayes Holderness

University of Richmond - School of Law

Date Written: 2016

Abstract

As the Internet has increased the ease and amount of interstate transactions, the states have struggled to require “remote vendors” — vendors without a physical presence in the taxing state — to collect or pay taxes. The states are attempting to overcome these struggles by lowering Commerce Clause limitations on their jurisdiction to tax, but meaningful limitations on such jurisdiction imposed by the Due Process Clause await the states. The Due Process Clause requires that state actions be fundamentally fair, and, to meet this standard, a state must provide a person with a benefit and the person must indicate acceptance of that benefit before the state can require the person to collect or pay taxes. These requirements limit the states’ jurisdiction to tax certain remote vendors; thus, the states must take the Due Process Clause seriously if they wish to fully solve their remote vendor issues.

Keywords: taxation, state and local taxation, constitutional law, due process

Suggested Citation

Holderness, Hayes, Taking Tax Due Process Seriously: The Give and Take of State Taxation (2016). 20 Florida Tax Review 317 (2017). Available at SSRN: https://ssrn.com/abstract=2703577 or http://dx.doi.org/10.2139/ssrn.2703577

Hayes Holderness (Contact Author)

University of Richmond - School of Law ( email )

28 Westhampton Way
Richmond, VA 23173
United States

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