What was the Supreme Court's holding in Complete Auto Transit?
A)An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence.
B)Reaffirmed that an out-of-state business must have physical presence in the state before the state may require the business to collect sales tax from in-state customers.
C)Provided four criteria for determining whether states may subject nondomiciliary companies to an income tax.
D)Defined solicitation for purposes of Public Law 86-272.

Question

Quizplus · Accepted Answer

The Supreme Court's holding in Complete Auto Transit, Inc. v. Brady established a four-prong test to determine the constitutionality of a state tax applied to interstate commerce. This test requires that the tax: (1) is applied to an activity with a substantial nexus with the taxing state, (2) is fairly apportioned, (3) does not discriminate against interstate commerce, and (4) is fairly related to the services provided by the state.

What Was the Supreme Court's Holding in Complete Auto Transit