A recent West Virginia case is a reminder that the use of intangibles in a state does not automatically lead to a finding of income tax nexus.
In May, the West Virginia Supreme Court, famous for its 2006 MBNA ruling on economic nexus, found that ConAgra Brands, which received royalties from intangible trademarks used in the state, satisfied neither the “purposeful direction” test under the Due Process Clause nor the “significant economic presence” test under the Commerce Clause to be subject to the state’s corporate net income or business franchise tax.
Read More » [cpa2biz]