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Got Nexus? Analyzing BNA's 2011 Survey of State Tax Departments


Product Code - TMA20
Speaker(s): Fred Nicely, Tax Counsel for COST and Thomas Shimkin, Director, MTC National Nexus Program
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While state nexus standards have always been a gray area, the disparate policies have become even harder to gauge in light of recent developments. More and more state appellate courts are upholding claims that substantial nexus can arise from “economic presence” and that the so-called “physical presence” rule set forth by the U.S. Supreme Court in Quill does not apply to income tax nexus determinations.

For purposes of sales tax, states are coming up with new ways of establishing substantial nexus or reporting requirements for online vendors.

This webinar covers the results of BNA’s 2011 Survey of State Tax Departments. The survey clarifies each state’s position on income and sales tax nexus.

This year we’ve expanded the survey to address additional questions regarding sales and use tax nexus, including the types of in-state solicitation activities that would trigger sales and use tax nexus for a remote vendor. Other sales and use tax questions focused on activities related to distribution and delivery and transactions involving franchise tax agreements.

Income tax nexus questions covered activities such as telecommuting, hosting a webinar for in-state registrants, and receiving management fees from related or unrelated entities.

Upon completion of this program, participants will be able to:

• Know the latest developments and trends regarding income and sales tax nexus

• Identify the types of activities, which by themselves, might be sufficient to trigger income or sales tax nexus in a state

• Understand the legal theories upon which the emerging state nexus doctrines are base

• Anticipate the nexus claims that may arise as a result of certain types of activities

• Compare the types of nexus policies adopted by the different jurisdictions

Fred Nicely, Tax Counsel for COST and Thomas Shimkin, Director, MTC National Nexus Program

Fred Nicely serves as Tax Counsel for COST. Fred’s role as Tax Counsel extends to all aspects of the COST mission statement: “to preserve and promote equitable and nondiscriminatory state and local taxation of multijurisdictional business entities.” Before joining COST, Fred served in the Ohio Department of Taxation for four years as Deputy Tax Commissioner over Legal and for the prior seven years as the Department’s Chief Counsel.He is a frequent speaker and author on Ohio’s tax system and on multistate tax issues generally.



Thomas Shimkin has worked for the Multistate Tax Commission since 1998, first as counsel to the Commission’s National Nexus Program, then as counsel in the Commission’s legal division where he worked on tax policy issues and model legislation. He is now director of the National Nexus Program. His responsibilities include working with states to develop uniform policies with respect to nexus issues; educating taxpayers about nexus; and managing the Commission’s fast-growing multi-state voluntary disclosure program.