The information in this chart is designed to provide a general overview of states' economic nexus positions with respect to sales, income, franchise, and gross receipts taxes and is not intended to address all potential nexus-creating activities or specific taxpayer situations, such as the potential impact of Public Law 86-272. This information is also limited to states' economic nexus positions affecting taxpayers in all industries, and does not account for any such positions that affect only one industry type (such as financial institutions). Because nexus determinations are highly fact-dependent, companies should work with their Wipfli tax professional to ensure this information is appropriately applied to their specific situation.
This chart also addresses economic nexus for purposes of certain local taxes. For sales tax purposes, most localities within a state take the position that if a seller has economic nexus for purposes of that state's sales tax, then the seller has economic nexus for purposes of all state-administered local sales taxes. For other local taxes (income, franchise, and gross receipts), most localities take the position that a seller must meet their locality-specific threshold in order to have economic nexus there.