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Sales Tax Nexus

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Nexus is a constantly evolving concept, as states (over time) write new rules or reinterpret existing law. The word nexus refers to a connection between a person and a taxing jurisdiction that is deemed sufficient to allow the jurisdiction to impose a tax. How to define that connection has been the subject of decades of debate in congress, and the courts, and in business communities. As businesses continually find new ways operate in the ever-changing world of distribution systems and electronic commerce, so too are taxing jurisdictions struggling to find new ways to impose their taxes.

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