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 |
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FIN-032 | Collecting, Reporting, and Remitting Sales Tax |