Public Law 86-272, Reinterpreted
The line now runs through the website itself.
The 1959 statute protects sellers whose only in-state activity is soliciting orders for tangible goods. Since the Multistate Tax Commission's 2021 statement, states have treated ordinary website interactions as something more. New York's regulation survived a facial challenge in May 2026, though applying it to periods before its December 2023 publication was held to violate due process, and that holding stands. California's parallel guidance was voided in 2023 on procedure, not substance, so the question there remains open. The line between protected solicitation and taxable presence now runs through the website itself: chat, cookies, post-sale support. Companies relying on the statute should know which side of the line their own site sits on.
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