State Sales Taxes

Activities that can establish sales tax nexus in a state

There are several ways a business can establish sales tax nexus, or an obligation to collect Sales tax, including:

  • Economic activity in a state (economic nexus)
  • Physical presence in a state (physical nexus)
  • Referrals from businesses or individuals in the state (click-through nexus)
  • Ties to affiliates in a state (affiliate nexus)

Economic nexus

Economic nexus is established when an out-of-state company’s sales into a state exceed the state’s economic nexus threshold. It’s a simple enough concept that’s complicated by the fact that no two thresholds are exactly alike. 

Any business that meets or exceeds a Read More

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