#Define nexus series

In short, nexus was like a virus that came from physicalĬontact. That business operations were occurring on the golf course! Its executives to golf in Florida for fear the state would take the position It was even rumored that Amazon wouldn’t allow Businesses had to be extremely careful where they operated their business if they did If you, your business, yourĮmployees, your inventory, or other items/people (even independentĬontractors!) were physically present in a state, nexus attached to yourīusiness and you were required, as a result, to register to collect and remit Physical presence standard was the law of the land. But Business A “gets” nexus withįlorida by opening a physical location within the state. Georgia because it is located in Georgia. In the scenario described above, Business A has nexus with Items for 6% less than competitors located in Florida is lost. Sales tax on all sales made into Florida. Now Business A has “nexus” with Florida and therefore it must collect and remit But once warehouse opens, the state of Florida takes the position that As Business A makes an increasing amount of sales into Florida, itĭecides it would be a great business strategy to have a warehouse location in Residents, collecting tax on Georgia sales but not collecting tax on Florida Business A make sales mostly to Georgia and Florida Fromġ992 until 2018, this point was defined as “actual, physical presence.”įor example, Business A is located in Georgia and makes Substantial enough for that state to have the authority to require you toĬollect and remit that state’s taxes. Means the point at which your business’s interaction with a state is That state to exercise taxing jurisdiction over you. Sales Tax Nexus is a sufficient connection with a state allowing for Isn’t exactly helpful in the context of sales tax.

#Define nexus series

Is “a connection or series of connections linking two or more things.” But that So what exactly is nexus? Google will tell you nexus However, until June 2018, their hands were bound by the laws surrounding nexus. For over a decade, they’ve been fighting this problem. Remember the first time you purchased something on Amazon and realized you didn’t have to pay sales tax? Like many others, you probably thought this was great and didn’t question why your purchase was “tax-free.” Unfortunately, states didn’t think it was so great. Why? The short answer is: internet sales. Wayfairthat changed sales tax law forever. In June 2018, the Supreme Court of the United States made a ruling in South Dakota vs.