How is nexus established?
What is “sufficient contact?” That is the $3 billion question. U.S. Supreme Court decisions in the 1940s and 1950s clearly established that if a company had a physical presence in a state, such as a retail store, warehouse, or regular presence of traveling salespeople, the company could be required to collect from customers and remit the applicable Use taxes. For example, a California-headquartered mail-order company could be collecting the New York and Illinois Use taxes because it has established a physical presence in each of them. For example, the mail-order company might have a warehouse in Illinois and a telemarketing center in New York. These rules and regulations are of course subject to change.
