What business activities trigger sales tax nexus? >> Physical Presence Nexus Physical presence nexus has historically been the criteria for determining local sales and use tax obligation. Physical presence in a jurisdiction includes activities like: Having a physical office, warehouse, storefront, or other location within the state Holding any property (including intangible assets and inventory)
Nexus studies are performed by CPAs well-versed in multistate taxation to help determine what a business’s tax exposure truly is.
More states are modifying their nexus doctrines to embrace the concept of economic presence for both sales and income taxes.
In 2018, the United States Supreme Court issued a ruling that transformed the landscape of sales tax laws in this country.
Nexus as a tax concept is nothing new, but it has wrestled its way into our mainstream news outlets in recent years. At first, it was economic presence that topped the headlines, then click-through nexus and the Amazon Law took their turns.