Administrative Law Division Issues Another No-Nexus Ruling On Intra-State Transactions

The Alabama Department of Revenue's Chief Administrative Law Judge, Bill Thompson, again expressed his "respectful" disagreement with the Alabama appellate courts over the test for determining nexus as between a vendor in one Alabama municipality and its customers in another municipality, when the vendor delivers the goods to customers in its own vehicles or sends in employees or contractors to make service or installation calls.

In the latest case, the taxpayer was a consumer electronics and appliance store in the City (and County) of Montgomery and had no other physical locations outside the City. Cohens Electronics and Appliances, Inc. v. Alabama Department of Revenue, Admin. Law Div. Dkt. No. S. 10-989 (July 12, 2011). The taxpayer did, however, have repair persons who made service calls to customers in and outside of Montgomery on multiple occasions. The facts of the case indicate that the repairmen would bring repair parts with them to the job but that no sales