Economic Nexus

Economic Nexus

A financial connection between a state and a non-resident seller sufficient to permit the state to assert its taxing authority over the seller (as defined by the US Supreme Court). Economic nexus is established when a seller exceeds the threshold number of transactions and/or dollar amount of sales in a given state. Once economic nexus is established, the state can require the vendor to collect and remit sales tax for products shipped into that state.

Policy # Policy Title
FIN-032 Collecting, Reporting, and Remitting Sales Tax