Under Public Law 86-272, a State Is Prohibited from Taxing

question 126

Short Answer

Under Public Law 86-272, a state is prohibited from taxing a business if the only connection with the state is the ________________of orders for sales of tangible personal property that are sent outside the state for approval or rejection.

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Definitions:

Breaches

Instances where a rule, law, contract, or promise is violated or not adhered to.

Poor Quality Merchandise

Refers to products that do not meet the expected standards or specifications in terms of functionality, durability, or appearance.

Warranty Agreements

Legal documents that ensure a seller's promise regarding the condition, quality, or performance of a product.