Multistate taxation efforts ramp up – Be aware of states with which your company may have nexus
Abstract: Before a business transaction triggers income or sales tax in a particular state, the company involved typically has to have a nexus — that is, a connection or link — with the state. Until recently, nexus generally was presumed to exist only if the business had a physical presence in the state. In this Internet age, however, even businesses without such a presence may be obligated to pay income or sales taxes. And states have different criteria for determining just what triggers their income or sales taxes. This article looks at some of the criteria used to establish nexus and describes attempts that have been made to streamline regulations among the states.