In this opinion, the Attorney General reviews the Retailers' Sales Tax Act in order to determine whether it violates the Import-Export Clause of the U.S. Constitution. After analyzing Commerce Clause jurisprudence, he determines that the "imposition of Tennessee;s sales and use taxes on out-of-state businesses with respect to items delivered or used in Tennessee is thus constitutionally permissible, provided that “substantial nexus” is established."
He concludes that the Retailers' Sales Tax Act imposes a privilege tax on the retail sale and use of tangible personal property in Tennessee, but that it does not impose a tax on imports from and exports to foreign countries in violation of the United States Constitution.
Read the full opinion here:
http://www.tba2.org/tba_files/AG/2011/ag_11_67.pdf
