Court Case: New Mexico Tax & Revenue Dept v Barnes and Noble.com

Question 1

What were the three parties involved in this case?

Answer 1

1. New Mexico Department of Revenue
2. BarnesandNobles.com
3. US Supreme Court

Question 2

What were the facts of this case?

Answer 2

• New Mexico believed that BN.com should be subject to the state’s gross receipts tax (despite not having physical presence) based off it’s relationship with its brick-and-mortar sister company, Barnes and Nobles.
• Barnes and Nobles promoted BN.com via gift cards that were redeemable on the website.
• Barnes and Noble shared customer email addresses with BN.com
• Barnes and Noble and BN.com shared loyalty programs.
• Barnes and Noble and BN.com used the same logos and trademarks

Question 3

What was the supreme court’s decision in this case?

Answer 3

The Supreme Court upheld the tax and said that the activities conducted by the Barnes and Noble on behalf of BN.com created significant nexus for BN.com and that they’d be liable to pay the tax moving forward.

Question 4

In what year did the case take place?

Answer 4

2012