Massachusetts Revokes Nexus Directive 17-1 Before it Takes Effect

Erik Wallin

June 29, 2017

This blog was last updated on March 13, 2019

Just two days before it was slated to take effect, the Massachusetts Department of Revenue revoked the highly controversial Directive 17-1 that sought to extend sales tax collection and remittance responsibilities on internet vendors that licensed software to Massachusetts customers, used cookies or contracted with marketplace providers located in the state. While Directive 17.2 revoking the earlier guidance is short on the details, it comes on the heels of a legal proceeding where businesses were seeking to temporarily block the measure.

However, this isn’t the end of Massachusetts efforts to collect tax from out-of-state vendors, Directive 17-2 indicates that the state is pursuing a similar measures via regulation (which requires notice and public comment) rather than through the use of a Directive.

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Author

Erik Wallin

Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.

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