“Drop Shipment” Sales Tax Rule Is Held Constitutional

Publication Name: 

“Drop Shipment” Sales Tax Rule Is Held Constitutional

Date: 
Wednesday, August 2, 2017

 

In D & H Distributors, Inc. v. Commissioner of Revenue (July 31, 2017), the Massachusetts Supreme Judicial Court (SJC) upheld the imposition of sales tax against a wholesaler that delivered goods directly to consumers in “drop shipment” transactions. 

Please click on the PDF below for a diagram of the "drop shipment rule" as described in D & H Distributors, Inc. v. Commissioner of Revenue (Massachusetts Supreme Judicial Court, July 31, 2017).

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