While economic nexus stole the nexus crown from physical presence, other nexus types are still in play even as the great nexodus unravels in state legislative houses. Businesses, in seeking to get their hands around economic nexus and strategizing to minimize tax liabilities and responsibilities, should take a step back to look at the forest of sales and use tax changes that continues to grow by the day. A survey of the full sales tax landscape reveals that while economic nexus is king, a groundswell of change is occurring with nexus types of click-through nexus and affiliate nexus as well as notice and reporting requirements for remote sellers.

States have readily jumped on the economic nexus bandwagon to greater tax revenue while at the same time dropping more complicated and expensive nexus categories. However, in usual fashion, the states have muddied the water as new laws are enacted and then changed and changed again to meet practical needs and Constitutional requirements. With the continuing uncertainty of change, one state, which repealed older nexus types, quickly reversed course and re-enacted legislation for affiliate and click-through nexus. Changes will undoubtedly continue to roll out at a quickened pace as ideas for supposed simplification percolate in the minds of legislatures, but this uncertainty can be managed with a basic understanding of the trends that are unfolding in great nexodus.

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