STATE OF LOUISIANA AND SECRETARY OF THE DEPARTMENT OF REVENUE AND TAXATION v. DELL INTERNATIONAL, INC., ET AL. 922 SO. 2D 1257 (LA. CT. APP. 2006)

The Louisiana appellate court reversed the trial court’s decision that Appellee-Defendant ("Dell") does not have sufficient nexus through a third party acting on its behalf in Louisiana, to create physical presence for use tax purposes. In this case, Dell's customers in Louisiana order products via the Internet or catalogs with orders accepted in Texas. Dell does not have any facilities or employees in Louisiana but has contracted with a repair service company in Louisiana to provide on-site repair service for its products in Louisiana. Reviewing the record, the appellate court holds that BancTec provides computer repair services in Louisiana to Dell customers on behalf of Dell. The court further holds that Dell attempts to hide behind the fact that it hired a third party to provide repair service in-state, or tag that third party as “independent,” in order to prevent nexus with Louisiana state, and accordingly, the court reverses the trial court’s judgment.

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