New York State of Mind

2. Assume the risk of an assessment. This is sort of the wait-and-see approach. With the constitutionality of this new law still very much up for debate, per the Supreme Court’s ruling in the Quill v. North Dakota case, which states that it’s unconstitutional for states to require out-of-state merchants with no physical presence in such states to collect sales taxes on remotely placed purchases, Isaacson believes direct marketers have a solid argument to rebut the presence of nexus in the state. But he also warns the burden is on the direct marketer to prove that the presumption of nexus doesn’t meet the standards of the U.S. Constitution.