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Luca CM Melchionna, Esq., Principal Luca CM Melchionna has 25+ years of experience in both private practice and academia, in Italy and in the United States. He is a...
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About us
Mission and Values
Mission Melchionna PLLC’s mission is to provide outstanding legal services and tax advice. We focus on building a relationship with each client to truly understand their needs and...
About us
Melchionna PLLC, a law firm with a focus on business, corporate, tax, and IP law.
About us Melchionna PLLC represents and assists North American and European business clients in achieving their goals with sound legal advice and innovative solutions to current...
International tax
Collecting Sales Tax For Long Distance Sales of Artwork is Mandatory
In South Dakota v. Wayfair et al., (585 U.S. ___, 2018) the Supreme Court of the United State has overturned a precedent previously established in Qill Corp. V. North Dakota...
International tax
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M&A and corporate law
FIRRMA, Foreign Investment Risk Review Modernization Act: Investing in the USA Will Become More Difficult in Key Sectors
The National Defense Authorization Act, introduced for the 2019 fiscal year, has updated and broadened the powers of the Commission on Foreign Investments in the United States...
Food law
FDA – Drug Supply Chain Security
The FDA has recently finalized some regulations regarding the Drug Supply Chain Security Act (DSCSA). The goal is to help companies that operate in the pharmaceutical industry...
International tax
Tax Cuts and Jobs Act 2017
The Tax Cuts and Jobs Act (TCJA), aimed at reducing the US’s federal tax burdens, came into effect on January 1, 2018. The most important aspects of the TCJA concern the reduction...
M&A and corporate law
Arbitration Clauses in Labor Contracts: Renouncing Class Actions is Legitimate
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Food law
The Food Safety Modernization Act, FSMA
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M&A and corporate law
Quadro Economico USA – il mercato delle M&A e’ in ripresa per le aziende medio piccole
I dati piu’ recenti pubblicati dal Bureau of Economic Analysis (BEA) registrano la solidità del quadro economico degli Stati Uniti, con un PIL che evidenzia, nel terzo trimestre...
Money laundering
FATF e Anti Money Laundering (AML) Regulations
Il Dodd-Frank Act e il JOBS Act (Jump Our Business Startups) richiedono alle societa’ target americane, come noto, una serie di disclosure finanziarie molto accurate. Sulla base...
Collecting Sales Tax For Long Distance Sales...
In South Dakota v. Wayfair et al., (585 U.S. ___, 2018) the Supreme Court of the United State has overturned a precedent previously established in Qill Corp. V. North Dakota (1992) which exempted art merchants from adding and collecting sales tax to any sales executed outside of their home state (under the Dormant Commerce Clause).
As a result of South Dakota, art dealers that sell outside of their state of residence are required to collect and pay the sales tax from wherever the sale has taken place (even if the tax was incurred following shipment, for example).
The court established that the rules holding dealers fiscally responsible in the state in which their goods are delivered, i.e. the destination state, are legitimate. The new rules also apply to telephone and Internet sales.
Prior to this ruling, Quill imposed sales tax liability only if the art merchant was physically present in the state in which the goods were being delivered. This precedent is now being overruled as it removed any incentive to establish a physical presence for businesses looking avoid tax burdens. The court stated that these behaviors were at the detriment of state tax agencies, leading to a loss of revenue worth between 8 and 33 billion dollars per year.
For these reasons, the judges in Quill have ruled that the sale of tangible goods and their delivery to citizens of South Dakota must be subject to a sales tax if: a) the amount of the gross value of sales of goods delivered within the State exceeds 100 thousand dollars; and b) more than 200 transactions per year have occurred in that state.
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