A taxpayer has nexus with a state for sales and use tax purposes if it has a physical presence in the state.

Question

Quizplus · Accepted Answer

This statement is true. Nexus is the connection between a taxpayer and a state that allows the state to require the taxpayer to collect and remit sales tax on sales made within the state. Physical presence is one factor that establishes nexus. Other factors can include economic presence, such as making a certain amount of sales within the state.

A Taxpayer Has Nexus with a State for Sales and Use