Beyond Gamez,Inc. ,a video game retailer based in California,does business in all fifty states exclusively online.According to New York state tax law,an out-of-state online retailer must collect and remit state taxes to New York if the retailer
A)plans to establish a substantial physical presence in New York.
B)targets a potential marketing base in New York.
C)maintains a Web site accessible in New York.
D)pays a party within New York to solicit business for its products.

Question

Quizplus · Accepted Answer

According to the question, Beyond Gamez, Inc. does not have a physical presence in New York, nor does it target a potential marketing base in New York. So, options A and B are eliminated. Option C is also not sufficient to trigger the tax liability in New York. However, if the company pays a party within New York to solicit business for its products, it establishes nexus in the state, which triggers a sales tax collection obligation. Therefore, the correct answer is D.