In a case that will help Connecticut boost its tax revenues, the U.S. Supreme Court has let stand a decision by the Connecticut Supreme Court that allows the state to collect sales taxes on items sold in-state by the Missouri-based Scholastic Book Club.
Sales tax exposure boils down to how much of an active business presence a company has in the state. In this case, the 13,000 schoolteachers who take orders and acted as intermediaries in book sales were enough to make Scholastic’s sales taxable, according to a March ruling with the Connecticut Supreme Court. The teachers were were not Scholastic’s agents, the justices found. Nevertheless, as “representatives” inside Connecticut, they gave the company a taxable Connecticut presence.
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