The Bloomberg BNA SALT Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues about state and local tax topics. The ideas presented here are those of individuals and Bloomberg BNA bears no responsibility for the appropriateness or accuracy of the communications between group members.
Tuesday, December 18, 2012
Nexus, which generally refers to the
threshold of contact that must exist between a taxpayer and a state before the
state has jurisdiction to tax the taxpayer, has long been a gray area for which
guidance in the form of case law or statutes from the states has generally been
Many jurisdictions have provided
further details of their nexus policies in the Bloomberg BNA State
Tax Department Survey. The 2013 edition of the survey that will be
published in April will cover each state’s policy regarding “trailing nexus.”
Some jurisdictions rely on the theory of
trailing nexus to assert that an out-of-state corporation’s duty to collect tax
lingers even after the company has ceased all activities within its borders. A
number of states have issued guidance on how trailing nexus as it applies to
use tax. The states that adhere to trailing nexus include:
The states that do not adhere to
trailing nexus include:
us on Twitter at: @SALTax Join BNA's State Tax Group on
to post a comment.
State Tax Snapshot: U.S. Supreme Court Declines to Hear Click-Through Nexus Case on ‘Cyber Monday’
Incentives Watch: Will State Tax Incentives Survive an Adverse International Ruling?
Incentives Watch: State Tax Credits – The Gift that Keeps on Giving?
Weekly Round-Up: Virginia Real Property Tax Assessment Procedure—Potential Pitfalls for the Unwary
Sales Tax Snapshot: Illinois Supreme Court Dissects and Deduces on the ‘Source’ of Confusion