The Evolution of P.L. 86-272

State and Local Tax (SALT) attorney Jennifer Karpchuk will participate in the Institute for Professionals in Taxation's (IPT) 50th Annual Conference in Honolulu, Hawaii. The yearly event features presentations on any and all topics pertaining to SALT practitioners, from tax apportionment to tax credits to sales and use tax. Ms. Karpchuk's session will focus on Public Law (P.L.) 86-272. Formally known as the Interstate Income Tax Act of 1959, this law prohibits states from imposing a net income tax on out-of-state businesses whose activity in a state consists solely of soliciting orders for the sale of tangible personal property. Ms. Karpchuk will review the legislative history of P.L. 86-272 and the judicial decisions that have shaped its interpretation, including Northwestern States Portland Cement Co. v. Minnesota. She will also describe how the statute applies to different industries along with its current limitations.