The Economic Nexus
Posted by Jen Bieker on June 16, 2016
Uncollected sales tax from online sales is at $24 billion!
- State budget shortfalls for the next 18 months are estimated at $19 billion.
- Could our state budgets be solved by enforcing and collecting missing online sales tax?
Probably, and that is the reason states are turning their attention to nexus. Sales tax nexus is defined as a seller having a “sufficient physical presence” in a state to make them liable to register in that state to collect and remit sales and use tax.
Ecommerce continues to gain momentum and states are taking action, despite multiple attempts to pass federal internet sales tax legislation. States have extended their reach further through click-through nexus and affiliate nexus laws aimed at remote sellers.
Having to comply with economic nexus laws could quickly push businesses beyond the threshold of managing sales tax manually. Be ready! Learn more about the burdens of economic nexus — and why switching to an automated solution is a more viable (and reliable) strategy — in this short, informative video.