New Mexico Taxation and Revenue Department, Plaintiff-Respondent v. Barnesandnoble.com LLC, Defendant-Petitioner

Summary

The New Mexico Supreme Court affirmed the Court of Appeals, holding that Barnesandnoble.com LLC has a substantial nexus with New Mexico because its sister corporation Barnes & Noble Booksellers performed in‑state activities that were significantly associated with bn.com’s ability to market its sales. Accordingly, the state may impose gross receipts tax on bn.com’s sales to New Mexico residents without violating the dormant Commerce Clause. The Court applied a de novo standard of review and remanded for further proceedings consistent with its nexus finding.