ACMA Contact: Paul Miller
914-669-8391
pmiller@commercemarketing.org
ACMA Responds to New York Court’s Tax Ruling, Opposes Massachusetts Regulation That Would Strip Federal Protections from Interstate Sellers
FOR IMMEDIATE RELEASE
Albany, NY, April 30 – April 29th brought two new developments in the ACMA’s efforts, through its counsel, Brann & Isaacson (B&I), to protect its members from state efforts to undermine the protections of Public Law 86–272, the 1959 federal statute that protects out-of-state sellers from the income taxes of states in which they do not have business operations beyond soliciting sales.
NY Judge Issues Split Decision; ACMA Explores Appeal
A New York trial court judge issued a split decision in the ACMA’s lawsuit challenging a New York regulation that the ACMA contends impermissibly narrows the protections of Public Law 86–272. The result was mixed.
On the positive side, the court ruled that New York’s Internet Activities Rule cannot be applied retroactively, and that enforcement for time periods before December 2023 is unconstitutional – a win for ACMA members.
On the negative side, the court sided with the New York tax agency, concluding that the challenged Internet Activities Rule did not conflict with Public Law 86-272. . As the ACMA argued on summary judgment, however, the Internet Activities Rule rewrites the substance of the federal statute by carving out “Internet Activities” for special treatment. Congress – and only Congress – has the authority to amend or repeal a federal statute. The ACMA is actively reviewing its appellate options.
ACMA Takes Similar Action in MA, NJ
Beyond New York, B&I submitted written comments on behalf of the ACMA to the Massachusetts Department of Revenue on a proposed regulatory amendment that would effectively eliminate the protections of Public Law 86–272 for online retailers.

Like the New York rule and one proposed in New Jersey, the Massachusetts amendment would treat “internet activities” as outside the protections of the plain language of the federal law. In its comments, the ACMA urges Massachusetts to follow the requirements of federal law and withdraw its unlawful regulation. The ACMA filed similar comments with the New Jersey tax agency on April 18th.
The ACMA’s litigation efforts in New York and comments on the New Jersey and Massachusetts regulations demonstrate the association’s ongoing commitment to defend its members from state regulatory attacks on Public Law 86–272.
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The ACMA (American Commerce Marketing Association) is the voice of the direct and remote marketing industry. It is the only organization advocating specifically for policy and legislation that benefits catalog, online, direct mail, and other remote marketers, as well as their suppliers. Founded in 2007 as the American Catalog Mailers Association, the ACMA is a nonprofit organization.

