Nexus Review

Nexus is the amount of contact a company has with a state that allows a state or taxing jurisdiction to impose its tax laws on that company.  For example, having real property such as an office building in a particular state is clearly enough contact in that state where that company will be required to abide by that state’s sales and use tax laws and will also be required to register for sales and use tax. 

But, what if a company makes one or two deliveries into a neighboring state using company vehicles; is that enough contact with the neighboring state to require the company to register for sales and use tax with the neighboring state? 

What happens if a company has a sales person make an occasional sales call into a state where the company does not have an office; is that enough contact to require the company to register for sales and use tax? 

Nexus laws vary a bit from state to state and a nexus review can help identify instances where a company has nexus with a state and needs to register for sales tax.