Sales tax nexus is a substantial connection between a business and a state which would require the business to collect sales tax. Typically and historically, sales tax nexus has been established by a company’s physical presence in the state. However, this is not always the case in each state and this is what we will dive into with this article on whether online advertising can create sales tax nexus.
Another thing to keep in mind with regard to sales tax nexus is economic nexus. Economic nexus is a new concept that was created as a result of the South Dakota v. Wayfair case. Since the case was decided in the U.S. Supreme Court in 2018, forty-three states and the District of Columbia (as of today) have created economic nexus laws, which require out-of-state sellers to register to collect sales tax if they meet certain gross receipts or transaction thresholds.
Because of these new laws regarding economic nexus, many states have amended their laws to simplify sales tax nexus for out-of-state sellers. As a result, for many states, out-of-state sellers without any physical presence only need to pay attention to these gross receipts or transaction thresholds for economic nexus. However, there are still some states that are holding on to their older laws, some of which pre-date the emergence of the internet and digital advertising.
This article attempts to determine the stances of the states as regards online advertising. This is important because many states have not given a clear-cut answer on this topic and have left it ambiguous, sometimes so much so that the state courts end up deciding this matter when a lawsuit arises.
Will online advertising create sales tax nexus for you in Alabama?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Alabama. Alabama’s laws allow the state to require sellers to collect sales tax if they maintain contact with the state, however, this allowance is limited by federal laws. The distribution of catalogs and other advertising materials can also create sales tax nexus, however, it is uncertain whether this is restricted to physical materials or also extends to digital content.
Where can you go to learn more about how online advertising creates sales tax nexus in Alabama?
You can learn more about how online advertising may create sales tax nexus in Alabama by reading Ala. Code § 40-23-68(b). Specifically, Ala. Code § 40-23-68(b)(9) and Ala. Code § 40-23-68(b)(10) touch on the possible nexus triggers for online advertising.
Will online advertising create sales tax nexus for you in Arizona?
Online advertising generally does NOT create sales tax nexus for you in Arizona.
Why does online advertising NOT create sales tax nexus for you in Arizona?
Arizona generally does not allow online advertising to create sales tax nexus. Arizona’s Transaction Privilege Tax (TPT) Ruling 16-1 had explicitly stated that advertising does not create sales tax nexus. However, since the economic nexus laws were passed in 2019, this ruling has since been rescinded. Yet, since economic nexus is not in any way triggered by advertising, it would seem reasonable to expect that this part of the ruling is still consistent with the current interpretation of Arizona’s laws.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Arizona?
You can learn more about how online advertising does not create sales tax nexus in Arizona by reading the Recession of Arizona TPT Ruling 16-1.
Will online advertising create sales tax nexus for you in Arkansas?
Online advertising generally does NOT create sales tax nexus for you in Arkansas.
Why does online advertising NOT create sales tax nexus for you in Arkansas?
Arkansas generally does not allow online advertising to create sales tax nexus. This can be inferred by Arkansas Code Ann. § 26-52-103(39) which does not consider internet advertising services to be a referral (referrals may create sales tax nexus).
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Arkansas?
You can learn more about how online advertising does not create sales tax nexus in Arkansas by reading Arkansas Code Ann. § 26-52-103(39).
Will online advertising create sales tax nexus for you in California?
Online advertising generally does NOT create sales tax nexus for you in California.
Why does online advertising NOT create sales tax nexus for you in California?
California generally does not allow online advertising to create sales tax nexus. Historically, California had a law that did allow online advertising to create sales tax nexus. However, California has since amended the law, removing the clause that allowed online advertising to create sales tax nexus.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in California?
You can learn more about how online advertising does not create sales tax nexus in California by reading California Rev. & Tax. Cd. §6203(c).
Will online advertising create sales tax nexus for you in Colorado?
Online advertising generally does NOT create sales tax nexus for you in Colorado.
Why does online advertising NOT create sales tax nexus for you in Colorado?
Colorado generally does not allow online advertising to create sales tax nexus. Colorado generally requires you to have sales in the state as well as maintain a physical presence or regularly or systemically make solicitations in the state before being considered to “do business in the state.” Colorado relies on the definition of solicitation as derived from National Bellas Hess, Inc. v. Illinois Dept. of Revenue, 386 U.S. 753 (1967), which the Supreme Court said was not enough to require online sellers to have nexus in Quill Corporation v. North Dakota (1992). Thus, it would seem apparent that Colorado would not require sellers who advertise online to register for sales tax in Colorado.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Colorado?
You can learn more about how online advertising does not create sales tax nexus in Colorado by reading Colorado Rev. Stat. § 39-26-102(3) & § 39-26-102(4).
Will online advertising create sales tax nexus for you in Connecticut?
Online advertising generally does NOT create sales tax nexus for you in Connecticut.
Why does online advertising NOT create sales tax nexus for you in Connecticut?
Connecticut generally does not allow online advertising to create sales tax nexus. That is not to say that Connecticut generally does not allow advertising to create sales tax nexus. Any physical advertising in Connecticut whether on a billboard or in a newspaper can create sales tax nexus. Also, advertising via radio or television can also create sales tax nexus. However, since the passing of the economic nexus thresholds in Connecticut, advertising via the Internet no longer creates sales tax nexus in itself.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Connecticut?
You can learn more about how online advertising does not create sales tax nexus in Connecticut by reading Connecticut Rev. Stat. § 39-26-102(3) & § 39-26-102(4).
Will online advertising create sales tax nexus for you in the District of Columbia?
Online advertising generally does NOT create sales tax nexus for you in the District of Columbia.
Why does online advertising NOT create sales tax nexus for you in the District of Columbia?
The District of Columbia generally does not allow online advertising to create sales tax nexus. The District of Columbia generally requires you to have sales in the state as well as maintain a physical presence and having an employee or contractor in the state making sales on your behalf before being considered to “engage in business in the state.” However, the District of Columbia does make clear that this term is not to be limited to this definition either.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in the District of Columbia?
You can learn more about how online advertising does not create sales tax nexus in the District of Columbia by reading District of Columbia Code Ann. § 47-2201(h)(2).
Will online advertising create sales tax nexus for you in Florida?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Florida. Florida’s laws give the state the power to tax any seller they deem to be a dealer of products or services in the state when the dealer meets certain conditions. One of these conditions is purposefully or systematically exploiting the Florida market by advertising by direct mail, distribution of catalogs or various types of electronic media such as computers, television, and radio. This would seem to indicate that online advertising may create sales tax nexus for you in Florida. However, it may be a little unclear what is meant by “purposefully or systematically exploiting the market.”
Where can you go to learn more about how online advertising creates sales tax nexus in Florida?
You can learn more about how online advertising may create sales tax nexus in Florida by reading Florida Stat. § 212.0596(2).
Will online advertising create sales tax nexus for you in Georgia?
Online advertising generally does NOT create sales tax nexus for you in Georgia.
Why does online advertising NOT create sales tax nexus for you in Georgia?
Georgia generally does not allow online advertising to create sales tax nexus. Georgia generally considers a dealer who “engages in the regular or systematic solicitation of a consumer market” in Georgia to be a dealer which is subject to sales tax nexus. However, if the dealer’s only activities in Georgia are direct mail, telephone, print media, or electronic media such as the internet, the dealer would not be subject to sales tax nexus.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Georgia?
You can learn more about how online advertising does not create sales tax nexus in Georgia by reading Georgia Code Ann. § 48-8-2(8)(I)(i).
Will online advertising create sales tax nexus for you in Hawaii?
Online advertising generally does NOT create sales tax nexus for you in Hawaii.
Why does online advertising NOT create sales tax nexus for you in Hawaii?
Hawaii generally does not allow online advertising to create sales tax nexus. Since Hawaii passed their economic nexus threshold law in 2018, the state amended their laws to state that a remote seller is engaging in business in their state if they meet the economic nexus thresholds. As a result, it would seem apparent that a seller who would not meet those thresholds would not be engaging in business in Hawaii regardless of any other remote activities (such as online advertising) they may perform.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Hawaii?
You can learn more about how online advertising does not create sales tax nexus in Hawaii by reading Hawaii Rev. Stat. § 237-2.5.
Will online advertising create sales tax nexus for you in Idaho?
Online advertising generally does NOT create sales tax nexus for you in Idaho.
Why does online advertising NOT create sales tax nexus for you in Idaho?
Idaho generally does not allow online advertising to create sales tax nexus. Since Idaho passed their economic nexus threshold law, the state amended their laws to state that a remote seller who solicits sales in the state of Idaho is engaging in business in their state only if they meet the economic nexus thresholds or otherwise have some sort of physical presence in the state. As a result, it would seem apparent that a seller who would not meet those thresholds would not be engaging in business in Idaho regardless of any other remote activities (such as online advertising) they may perform.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Idaho?
You can learn more about how online advertising does not create sales tax nexus in Idaho by reading Idaho Code § 63-3611.
Will online advertising create sales tax nexus for you in Illinois?
Online advertising generally does NOT create sales tax nexus for you in Illinois.
Why does online advertising NOT create sales tax nexus for you in Illinois?
Illinois generally does not allow online advertising to create sales tax nexus. Outside of maintaining a physical presence in Illinois, the two main triggers for creating sales tax nexus are (1) “click-through” nexus in which you make sales via a seller located in the state and give them a commission based on the sales they make and (2) having economic nexus in the state by having a certain level of sales or transactions within the state. Online advertising is not one of those triggers.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Idaho?
You can learn more about how online advertising does not create sales tax nexus in Illinois by reading Illinois Chapter 35 § 105/2.
Will online advertising create sales tax nexus for you in Indiana?
Online advertising generally does NOT create sales tax nexus for you in Indiana.
Why does online advertising NOT create sales tax nexus for you in Indiana?
Indiana generally does not allow online advertising to create sales tax nexus. Since Indiana passed their economic nexus threshold law in 2018, the state amended their laws to state that a remote seller is engaging in business in their state if they meet the economic nexus thresholds. As a result, it would seem apparent that a seller who would not meet those thresholds would not be engaging in business in Indiana regardless of any other remote activities (such as online advertising) they may perform.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Indiana?
You can learn more about how online advertising does not create sales tax nexus in Indiana by reading Indiana Code § 6-2.5-2-1(c).
Will online advertising create sales tax nexus for you in Iowa?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Iowa. Iowa requires any retailer maintaining a place of business in the state to register and collect sales tax. Most of the qualifiers for this requirement of “maintaining a place of business” have to do with physical presence. However, the last qualifier for this requirement of “maintaining a place of business” is any retailer who performs any activities that “are significantly associated with the retailer’s ability to establish and maintain a market in this state for the retailer’s sales.” As you can imagine, the interpretation of this is quite open-ended.
Where can you go to learn more about how online advertising creates sales tax nexus in Iowa?
You can learn more about how online advertising may create sales tax nexus in Iowa by reading Iowa Code § 423.1(48)(a)(2)(f).
Will online advertising create sales tax nexus for you in Kansas?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Kansas. Kansas requires any retailer engaging in business in the state to register and collect sales tax. One of the triggers for engaging in business in Kansas is “conducting any other activities in the state that are significantly associated with the retailer’s ability to establish and maintain a market in the state for the retailer’s sales.” Another possible trigger for engaging in business in Kansas is soliciting orders via catalogs or other advertising media.
Where can you go to learn more about how online advertising creates sales tax nexus in Kansas?
You can learn more about how online advertising may create sales tax nexus in Kansas by reading Kansas Stat. Ann. § 79-3702(h) and Kansas Admin. Regs. § 92-20-7.
Will online advertising create sales tax nexus for you in Kentucky?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Kentucky. Kentucky generally requires any seller who engages in business in the state to register and collect sales tax. Although most of the triggers for engaging in business in Kentucky have to do with physical presence, Kentucky does have a trigger that requires any seller who solicits orders using any facility or service (such as a radio, television, print media, or any other service) in the state to register and collect sales tax.
Where can you go to learn more about how online advertising creates sales tax nexus in Kentucky?
You can learn more about how online advertising may create sales tax nexus in Kentucky by reading Kentucky Rev. Stat. Ann. § 139.340(2)(c).
Will online advertising create sales tax nexus for you in Louisiana?
Online advertising generally does NOT create sales tax nexus for you in Louisiana.
Why does online advertising NOT create sales tax nexus for you in Louisiana?
Louisiana generally does not allow online advertising to create sales tax nexus. Since Louisiana passed their economic nexus threshold law, the state amended their laws to state that a remote seller is engaging in business in their state if they meet the economic nexus thresholds. As a result, it would seem apparent that a seller who would not meet those thresholds would not be engaging in business in Louisiana regardless of any other remote activities (such as online advertising) they may perform.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Louisiana?
You can learn more about how online advertising does not create sales tax nexus in Louisiana by reading Louisiana Rev. Stat. Ann. § 47:301(4)(m).
Will online advertising create sales tax nexus for you in Maine?
Online advertising generally does NOT create sales tax nexus for you in Maine.
Why does online advertising NOT create sales tax nexus for you in Maine?
Maine generally does not allow online advertising to create sales tax nexus. Since Maine passed their economic nexus threshold law, the state amended their laws to state that a remote seller does not have nexus in Maine if their only activities are solicitation through printed or electronic media and the products are delivered via a third-party common carrier.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Maine?
You can learn more about how online advertising does not create sales tax nexus in Maine by reading Maine Rev. Stat. Ann. 36 § 1754-B(1-C)(A).
Will online advertising create sales tax nexus for you in Maryland?
Online advertising generally does NOT create sales tax nexus for you in Maryland.
Why does online advertising NOT create sales tax nexus for you in Maryland?
Maryland generally does not allow online advertising to create sales tax nexus. Maryland requires all businesses who “engage in the business of an out-of-state vendor” to register and collect sales tax in the state. Generally, this term refers to any business that sells products or services to customers in Maryland while also maintaining some sort of physical presence in the state. Since online advertising does not involve any physical presence in the state, it is highly probable that online advertising does not create sales tax nexus in Maryland.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Maryland?
You can learn more about how online advertising does not create sales tax nexus in Maryland by reading Maryland Code Ann. Tax-Gen. § 11-101(o) and Maryland Code Ann. Tax-Gen. § 11-701(b).
Will online advertising create sales tax nexus for you in Massachusetts?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Massachusetts. Massachusetts generally requires any seller who engages in business in the state to register and collect sales tax. Although most of the triggers for engaging in business in Massachusetts have to do with physical presence, Massachusetts does have a trigger that requires any seller who takes advantage of the retail market in the state by regularly soliciting orders via newspapers, radios, magazines, computer networks, or any other communication medium to register and collect sales tax.
Where can you go to learn more about how online advertising creates sales tax nexus in Massachusetts?
You can learn more about how online advertising may create sales tax nexus in Massachusetts by reading Massachusetts Gen. L. Chapter 64H § 1.
Will online advertising create sales tax nexus for you in Michigan?
Online advertising generally does NOT create sales tax nexus for you in Michigan.
Why does online advertising NOT create sales tax nexus for you in Michigan?
Michigan generally does not allow online advertising to create sales tax nexus. Before Michigan enacted its economic nexus rule, Michigan came out with an explanatory document regarding out-of-state sellers and nexus in 2015. In this document, Michigan clearly states that advertising in the state will not in-and-of-itself cause a seller to be “engaged in business in the state”. As a result, online advertising does not create sales tax nexus for you in Michigan.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Michigan?
You can learn more about how online advertising does not create sales tax nexus in Michigan by reading Michigan Revenue Administrative Bulletin No. 2015-22, 11/03/2015.
Will online advertising create sales tax nexus for you in Minnesota?
Online advertising generally does NOT create sales tax nexus for you in Minnesota without already having economic nexus in the state.
Why does online advertising NOT create sales tax nexus for you in Minnesota?
Minnesota generally does not allow online advertising to create sales tax nexus. Since Minnesota enacted its economic nexus rule, Minnesota altered its laws to state that an out of state seller would need to have reached one of its economic nexus thresholds in order for the “advertising nexus” to be triggered. Once a seller has triggered economic nexus, they will be considered to have “regularly or systemically solicited sales from potential customers in the state.” Thus, as a result, an out of state seller cannot trigger advertising nexus without first having triggered economic nexus.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Minnesota?
You can learn more about how online advertising does not generally create sales tax nexus in Minnesota by reading Minnesota Stat. § 297A.66, Subdivision 1(c).
Will online advertising create sales tax nexus for you in Mississippi?
Online advertising generally does NOT create sales tax nexus for you in Mississippi without already having economic nexus in the state.
Why does online advertising NOT create sales tax nexus for you in Mississippi?
Mississippi generally allows online advertising to create sales tax nexus. HOWEVER, since Mississippi enacted its economic nexus rule, Mississippi altered its laws to state such that online advertising nexus would only be created if the seller reached one of the economic nexus thresholds. Once a seller has triggered economic nexus, they will be considered to have “purposefully or systematically exploited the Mississippi market.” Thus, as a result, an out-of-state seller cannot trigger advertising nexus without first having triggered economic nexus.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Mississippi?
You can learn more about how online advertising does not generally create sales tax nexus in Mississippi by reading Mississippi Administrative Code § 35.IV.3.09(100) and Mississippi Administrative Code § 35.IV.3.09(101).
Will online advertising create sales tax nexus for you in Missouri?
Online advertising generally does NOT create sales tax nexus for you in Missouri.
Why does online advertising NOT create sales tax nexus for you in Missouri?
Missouri generally does not allow online advertising to create sales tax nexus. Although Missouri does not currently have an economic nexus rule at the time of this writing, Missouri came out with an explanatory document regarding out-of-state sellers and nexus in 2005. In this document, Missouri clearly states that advertising in the state will not in and of itself cause a seller to be “engaged in business in the state”. As a result, online advertising does not create sales tax nexus for you in Missouri.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Missouri?
You can learn more about how online advertising does not create sales tax nexus in Missouri by reading Missouri Code Regs. 12 § 10-114.100(3)(B).
Will online advertising create sales tax nexus for you in Nebraska?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Nebraska. Nebraska generally requires any seller who engages in business in the state to register and collect sales tax. Although most of the triggers for engaging in business in Nebraska have to do with physical presence, Nebraska does require sellers to register and collect sales tax who continuously, regularly, or systemically solicit retail sales via electronic media.
Where can you go to learn more about how online advertising creates sales tax nexus in Nebraska?
You can learn more about how online advertising may create sales tax nexus in Nebraska by reading Nebraska Rev. Stat. § 77-2703(1)(d).
Will online advertising create sales tax nexus for you in Nevada?
Online advertising generally does NOT create sales tax nexus for you in Nevada.
Why does online advertising NOT create sales tax nexus for you in Nevada?
Nevada generally does not allow online advertising to create sales tax nexus. Nevada requires all sellers who do business in Nevada to register and collect sales tax in the state. Since Nevada enacted its economic nexus rule, Nevada altered its rules to explicitly exclude sellers who only solicit orders through advertising in the state from the definition of doing business in Nevada.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Nevada?
You can learn more about how online advertising does not create sales tax nexus in Nevada by reading Nevada Rev. Stat. § 80.015(1)(f).
Will online advertising create sales tax nexus for you in New Jersey?
Online advertising generally does NOT create sales tax nexus for you in New Jersey.
Why does online advertising NOT create sales tax nexus for you in New Jersey?
New Jersey generally does not allow online advertising to create sales tax nexus. Before New Jersey enacted its economic nexus rule, New Jersey came out with an explanatory document regarding out-of-state sellers and nexus in 2015. In this document, New Jersey states a list of seven reasons that would cause a seller to be “engaged in business in the state” and thus be required to collect and remit sales tax. Online advertising was not listed as one of those seven reasons, and thus it would appear that online advertising does not create sales tax nexus in the state of New Jersey.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in New Jersey?
You can learn more about how online advertising does not create sales tax nexus in New Jersey by reading New Jersey Division of Taxation Technical Bulletin, No. TB-78, 07/30/2015.
Will online advertising create sales tax nexus for you in New Mexico?
As of this writing, it is unclear whether or not online advertising creates nexus for you in New Mexico. New Mexico generally requires any seller who is carrying on an activity in the state to register and collect sales tax in the state. A few of the activities that would trigger this duty to collect and remit sales tax are soliciting orders through newspapers, television or radio stations, or otherwise exploiting the market of New Mexico in any other way.
Where can you go to learn more about how online advertising creates sales tax nexus in New Mexico?
You can learn more about how online advertising may create sales tax nexus in New Mexico by reading New Mexico Stat § 7-9-10(A).
Will online advertising create sales tax nexus for you in New York?
Online advertising generally does NOT create sales tax nexus for you in New York.
Why does online advertising NOT create sales tax nexus for you in New York?
New York generally does not allow online advertising to create sales tax nexus. New York has historically held that advertising can create sales tax nexus as much as the United States Constitution allows. This was quite ambiguous as you can imagine, so much so that one seller reached out to the state for an advisory opinion in 1996. The out-of-state seller participated in trade shows and advertised via mail, but the state found that the seller did not have nexus in the state of New York.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in New York?
You can learn more about how online advertising does not create sales tax nexus in New York by reading New York Tax Law § 1101(b)(8)(i)(C) and New York Advisory Opinion No. TSB-A-96(83)S, 12/26/1996.
Will online advertising create sales tax nexus for you in North Carolina?
As of this writing, it is unclear whether or not online advertising creates nexus for you in North Carolina. North Carolina generally requires any seller who is engaged in business in the state to register and collect sales tax in the state. Other than actually having a physical presence in the state, a few of the activities that would trigger this duty to collect and remit sales tax are direct mail advertising, distribution of catalogs, computer-assisted shopping, advertising through printed media such as magazines or newspapers or through electronic media such as television or radio or otherwise exploiting the market of North Carolina in any other way.
Where can you go to learn more about how online advertising creates sales tax nexus in North Carolina?
You can learn more about how online advertising may create sales tax nexus in North Carolina by reading North Carolina Gen. Stat. § 105-164.8(b).
Will online advertising create sales tax nexus for you in North Dakota?
Online advertising generally does NOT create sales tax nexus for you in North Dakota.
Why does online advertising NOT create sales tax nexus for you in North Dakota?
North Dakota generally does not allow online advertising to create sales tax nexus. North Dakota generally does not require out of state sellers to register with the state to collect and remit sales tax unless the seller has reached the economic nexus thresholds for the state.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in North Dakota?
You can learn more about how online advertising does not create sales tax nexus in North Dakota by reading North Dakota Cent. Code § 57-39.2-14(1).
Will online advertising create sales tax nexus for you in Ohio?
Online advertising generally does NOT create sales tax nexus for you in Ohio.
Why does online advertising NOT create sales tax nexus for you in Ohio?
Ohio generally does not allow online advertising to create sales tax nexus. Before Ohio enacted its economic nexus rule, Ohio came out with an explanatory document regarding out-of-state sellers and nexus in 2017. In this document, Ohio gives a list of sixteen reasons that would cause a seller to not be “engaged in business in the state” and thus not be required to collect and remit sales tax. In that list of reasons that a seller would not be required to collect and remit sales tax is “the out-of-state seller advertises in the state through various electronic or print media.” Thus, any seller whose only activity in Ohio is online advertising would not have sales tax nexus in the state.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Ohio?
You can learn more about how online advertising does not create sales tax nexus in Ohio by reading Ohio Tax Information Release No. ST 2001-01, 10/01/2017.
Will online advertising create sales tax nexus for you in Oklahoma?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Oklahoma. Oklahoma generally requires any seller who is maintaining a place of business in the state to register and collect sales tax in the state. Other than actually having a physical presence in the state, one of the activities that would trigger this duty to collect and remit sales tax is soliciting orders through mail or telephone regardless of the method of delivery. Although this activity does not explicitly include internet solicitation, it is uncertain whether the law implies such.
Where can you go to learn more about how online advertising creates sales tax nexus in Oklahoma?
You can learn more about how online advertising may create sales tax nexus in Oklahoma by reading Oklahoma Stat. 68 §1352(13)(b).
Will online advertising create sales tax nexus for you in Pennsylvania?
Online advertising generally does NOT create sales tax nexus for you in Pennsylvania.
Why does online advertising NOT create sales tax nexus for you in Pennsylvania?
Pennsylvania generally does not allow online advertising to create sales tax nexus. Pennsylvania has historically held that regularly or substantially soliciting orders in the state whether via catalogs or any other method can create sales tax nexus. In 1986, when Pennsylvania tried to require a seller to collect and remit sales tax based on that law, the seller pushed back at the ruling, and the case reached the Commonwealth Court of Pennsylvania. The judges reached the conclusion that although the seller’s only activity in the state was advertising through catalogs, the seller was not liable for collecting and remitting sales tax. This was decision was based mostly off the decision of the US Supreme Court in National Bellas Hess v. Department of Revenue, 386 U.S. 753 (1967).
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Pennsylvania?
You can learn more about how online advertising does not create sales tax nexus in Pennsylvania by reading Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 7201(b)(3) and LL Bean, Inc. v. Dept. of Rev., 101 Pa. Commonwealth Ct. 435 (1986).
Will online advertising create sales tax nexus for you in Rhode Island?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Rhode Island. Rhode Island generally requires any seller who is a retailer in the state to register and collect sales tax in the state. If a seller does not have physical presence in the state, a seller could still be considered a retailer in Rhode Island if they regularly or systematically solicit sales through advertising in newspapers, magazines, catalogs, telephone, computer-assisted shopping networks, radio, television, or any other electronic media.
Where can you go to learn more about how online advertising creates sales tax nexus in Rhode Island?
You can learn more about how online advertising may create sales tax nexus in Rhode Island by reading Rhode Island Gen. Laws § 44-18-15(a)(6).
Will online advertising create sales tax nexus for you in South Carolina?
Online advertising generally does NOT create sales tax nexus for you in South Carolina without already having economic nexus in the state.
Why does online advertising NOT create sales tax nexus for you in South Carolina?
South Carolina generally does not allow online advertising to create sales tax nexus. Since South Carolina enacted its economic nexus rule, South Carolina altered its laws to state that an out of state seller would need to have reached one of its economic nexus thresholds in order for the “advertising nexus” to be triggered. Once a seller has triggered economic nexus, they will be considered to have “regularly or systemically solicited sales from potential customers in the state.” Thus, as a result, an out of state seller cannot trigger advertising nexus without first having triggered economic nexus.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in South Carolina?
You can learn more about how online advertising does not generally create sales tax nexus in South Carolina by reading South Carolina Revenue Ruling #18-14.
Will online advertising create sales tax nexus for you in South Dakota?
Online advertising generally does NOT create sales tax nexus for you in South Dakota.
Why does online advertising NOT create sales tax nexus for you in South Dakota?
South Dakota generally does not allow online advertising to create sales tax nexus. Since South Dakota enacted its economic nexus rule, South Dakota altered its laws such that an out of state seller must meet the economic nexus threshold to be required to register to collect and remit sales tax in the state. Thus, whether or not the seller advertises online is irrelevant in determining whether the seller has nexus in South Dakota.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in South Dakota?
You can learn more about how online advertising does not generally create sales tax nexus in South Dakota by reading South Dakota Sales & Use Tax Facts 2019-01 License Requirements for Sales, Use & Contractor’s Excise Tax.
Will online advertising create sales tax nexus for you in Tennessee?
Online advertising generally does NOT create sales tax nexus for you in Tennessee.
Why does online advertising NOT create sales tax nexus for you in Tennessee?
Tennessee generally does not allow online advertising to create sales tax nexus. Way before Tennessee enacted its economic nexus rule, Tennessee came out with an explanatory document regarding out-of-state sellers and nexus in 2002. In this document, Tennessee provides a list of nine reasons that would cause a seller to be considered out of state dealer who would be required to collect and remit sales tax. Online advertising was not listed as one of those nine reasons, and thus it would appear that online advertising does not create sales tax nexus in the state of Tennessee.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Tennessee?
You can learn more about how online advertising does not create sales tax nexus in Tennessee by reading Tennessee Sales & Use Tax Notice 12/01/2002.
Will online advertising create sales tax nexus for you in Texas?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Texas. Texas generally requires any seller who is “engaged in business” in the state to register and collect sales tax in the state. If a seller does not have physical presence in the state, a seller could still be considered to be “engaged in business” in Texas if they regularly or systematically solicit sales through advertising in newspapers, magazines, catalogs, telephone, computer database, radio, television, or any other communication media.
Where can you go to learn more about how online advertising creates sales tax nexus in Texas?
You can learn more about how online advertising may create sales tax nexus in Texas by reading Texas Tax Code § 151.107(a)(4) or by reading “Are You Engaged in Business in Texas?”.
Will online advertising create sales tax nexus for you in Utah?
Online advertising generally does NOT create sales tax nexus for you in Utah.
Why does online advertising NOT create sales tax nexus for you in Utah?
Utah generally does not allow online advertising to create sales tax nexus. Utah generally requires any out of state seller who solicits products or services in Utah to have sales tax nexus and be required to register to collect and remit sales tax. However, the state says that if the dealer’s only activities in Utah are advertising or soliciting via direct mail, electronic mail, the internet, or a telecommunication service, the seller would not be subject to sales tax nexus.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Utah?
You can learn more about how online advertising does not create sales tax nexus in Utah by reading Utah Code Ann. § 59-12-107(2)(c) or by reading Utah Publication 25 Utah Sales & Use Tax, General Info.
Will online advertising create sales tax nexus for you in Vermont?
Online advertising generally does NOT create sales tax nexus for you in Vermont without already having economic nexus in the state.
Why does online advertising NOT create sales tax nexus for you in Vermont?
Vermont generally does not allow online advertising to create sales tax nexus. Since Vermont enacted its economic nexus laws, Vermont generally considers any out of state seller who engages in regular or systematic solicitation in Vermont to have sales tax nexus and be required to register to collect and remit sales tax only if the seller also has reached the applicable economic nexus threshold. Thus you would need to have already had economic nexus before being required to collect sales tax because of your regular or systematic solicitation (online advertising).
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Vermont?
You can learn more about how online advertising does not create sales tax nexus in Vermont by reading Vermont Stat. Ann. 32 § 9701(9)(F).
Will online advertising create sales tax nexus for you in Virginia?
As of this writing, it is unclear whether or not online advertising creates nexus for you in Virginia. Virginia generally requires any dealer who has sufficient activity in the state to register and collect sales tax in the state. If a seller does not have physical presence in the state, a seller could still be considered to have sufficient activity in Virginia if they advertise in newspapers or periodicals or if they advertise on a regular or systematic basis in any other way. However, it is very possible that this legislation has been overruled in application since the economic nexus thresholds have been enacted in Virginia.
Where can you go to learn more about how online advertising creates sales tax nexus in Virginia?
You can learn more about how online advertising may create sales tax nexus in Virginia by reading Virginia Code Ann. § 58.1-612(C).
Will online advertising create sales tax nexus for you in Washington?
Online advertising generally does NOT create sales tax nexus for you in Washington without already having economic nexus in the state.
Why does online advertising NOT create sales tax nexus for you in Washington?
Washington generally does not allow online advertising to create sales tax nexus. Washington generally requires any out of state seller who maintains a place of business in Washington to have sales tax nexus and be required to register to collect and remit sales tax. Other than having a physical presence in the state, you could be deemed to have a place of business in Washington if you regularly solicit sales in the state via advertising whether it is through mail, catalogs, television, radio, computer-assisted shopping, or any electronic media. However, if advertising is your only activity in Washington, you do not have to register to collect and remit sales tax unless you have five hundred thousand dollars of gross receipts in the previous twelve months. This threshold is more than the economic nexus threshold of one hundred thousand dollars, and thus you would have economic nexus before you would have sales tax nexus because of online advertising.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Washington?
You can learn more about how online advertising does not create sales tax nexus in Washington by reading Washington Admin. Code § 458-20-221(2)(c) and Wash. Rev. Code § 82.08.052.
Will online advertising create sales tax nexus for you in West Virginia?
Online advertising generally does NOT create sales tax nexus for you in West Virginia.
Why does online advertising NOT create sales tax nexus for you in West Virginia?
West Virginia generally does not allow online advertising to create sales tax nexus. West Virginia generally considers any “retailer engaging in business in this State” in West Virginia to have sales tax nexus and be required to register to collect and remit sales tax. The state goes on to list six reasons for which an out of state seller might be considered to be engaged in business in the state. A few of those reasons involve advertising through television or telephone communication, but none of the listed reasons consider advertising through printed media to be a sufficient cause for sales tax nexus.
Where can you go to learn more about how online advertising does NOT create sales tax nexus in West Virginia?
You can learn more about how online advertising does not create sales tax nexus in West Virginia by reading West Virginia Code of State Rules § 110-15-2.78.
Will online advertising create sales tax nexus for you in Wisconsin?
Online advertising generally does NOT create sales tax nexus for you in Wisconsin without already having economic nexus in the state.
Why does online advertising NOT create sales tax nexus for you in Wisconsin?
Wisconsin generally does not allow online advertising to create sales tax nexus. Since Wisconsin enacted its economic nexus laws, Wisconsin generally considers any out of state seller who engages in regular or systematic solicitation in Wisconsin to have sales tax nexus and be required to register to collect and remit sales tax only if the seller also has reached the applicable economic nexus threshold. Thus you would need to have already had economic nexus before being required to collect sales tax because of your regular or systematic solicitation (online advertising).
Where can you go to learn more about how online advertising does NOT create sales tax nexus in Wisconsin?
You can learn more about how online advertising does not create sales tax nexus in Wisconsin by reading Wisconsin Stat. § 77.51.(13gm)(a).
Does online advertising create sales tax nexus for you in Wyoming?
Online advertising generally can create sales tax nexus for you in Wyoming.
Why does online advertising create sales tax nexus for you in Wyoming?
Wyoming generally allows online advertising to create sales tax nexus. Wyoming requires any out of state vendor to register to collect and remit sales tax if the vendor has three or more instances of advertising in the state in the past twelve months. The advertising can be transmitted via print media, radio, television, or any other electronic media. This requirement is only for those who are advertising for the purpose of selling tangible personal property.
Where can you go to learn more?
You can learn more about how online advertising can create sales tax nexus in Wyoming by reading Wyoming Stat. § 39-16-101(a)(x).
Get TaxValet newsletters to keep you in the loop on sales tax issues.