Sales Tax Nexus Quiz

Solar Threads, a Texas-based brand, runs a booth for two months at a weekend market in Oregon. Does this create nexus?

• No - temporary presence is excluded

• Yes - booth = physical presence

• No - only online sales count

• Yes - economic nexus applies

Zephyr Audio, based in Nevada, demos products twice a year at Illinois expos without selling directly. Does this create nexus?

• Yes - repeated in-state activity

• No - no orders accepted

• No - expos are exempt

• Yes - economic threshold met

Paperloop, based in Texas, ships $110,000 annually to Michigan via USPS. Does this create nexus?

• No - no reps in-state

• Yes - sales exceed threshold

• No - USPS shipping is exempt

• Yes - marketplace handles tax

Café Urbano, based in Texas, leases a self-serve coffee kiosk inside a university bookstore in North Carolina. Does this create nexus?

• No - not a full retail store

• Yes - leased space is physical presence

• No - no employees on site

• Yes - economic threshold exceeded

Serif & Sons, an Arizona-based publisher, uses independent reps to market books to libraries in New Mexico. Does this create nexus?

• No - reps aren't employees

• Yes - reps create nexus

• No - only online orders qualify

• Yes - books are taxable

Aquila Motorsports, based in Texas, participates in an auto show in New York, handing out freebies and collecting customer info. Does this create nexus?

• No - no products sold

• No - trade shows are exempt

• Yes - marketing + engagement triggers nexus

• Yes - shipping creates nexus

Verdant Greens, based in CA, stores inventory in a 3PL warehouse in Pennsylvania. Does this create nexus?

• No - 3PL handles it

• Yes - in-state inventory = physical presence

• No - no salespeople present

• Yes - remote work triggers nexus

Atlas Home Design, based in Texas, contracts interior designers in Colorado to promote its furniture. Does this create nexus?

• No - no storefront

• Yes - local agents acting on behalf

• No - only digital sales matter

• Yes - orders are taxable

Lunar Print Co., based in Texas, ships $18,000 in online orders annually to Maine via USPS. Does this create nexus?

• Yes - shipping triggers it

• No - under economic threshold

• Yes - tangible goods are taxable

• No - catalog-only sellers are exempt

Opus Ceramics, based in New Mexico, mails catalogs to Vermont. All orders are online and fulfilled from NM. Does this create nexus?

• Yes - print marketing triggers nexus

• No - no in-state presence

• Yes - out-of-state sellers must register

• No - Vermont exempts ceramics