Proposal in Establishing a Clear Nexus Standard in the United StatesNexus issues, as they relate to electronic commerce, will undoubtedly be a major topic of discussion in state taxation throughout the next decade. The application of nexus standards to electronic commerce transactions is a uniquely difficult undertaking. The Internet opens up possibilities for purposeful direction of economic activity to market states with a wide variety of links between remote vendors and third-party telecommunications, computer, and financial services companies. As such it is crucial for the Congress in helping to establish a clear nexus standard and definitions to determine when companies have sufficient physical presence that they can be required by a state to collect sales taxes.
The following questions have been addressed in this article:What is the “economic presence” next test?
Are they any nexus guidelines for the application of sales and use tax laws to out-of-state businesses?