Retailers selling into multiple tax jurisdictions often have difficulty determining where they have nexus and knowing exactly what types of activities trigger sales or use tax. Nexus is made more complex by the inconstant nature of retail (sales go up and sales go down; new markets are entered and old markets abandoned), differences between states, and the fluid nature of state and local sales and use tax laws. Take, for example, recent legislative changes affecting nexus creating activities in Wisconsin.
Effective July 14, 2015, nexus is created for retailers who maintain, occupy, or use (permanently or temporarily, directly or indirectly, or through a subsidiary, agent, or some other person) any of the following in Wisconsin:
Place of distribution
Sales or sample room or place
Warehouse or storage space
Other place of business
Also effective July 14, 2015, the definition of nexus is expanded to include having any representative in Wisconsin in order to perform services or any of the activities described in sec. 77.51(13g), Wis. Stats. Furthermore, provisions added to 77.51(13g) expand the definition of nexus-creating activities to include the following:
“Servicing, repairing, or installing equipment or other tangible personal property, or items, property, or goods under sec. 77.52(1)(b), (c), or (d), Wis. Stats.
Delivering tangible personal property or items under sec. 77.52(1)(b), (c), or (d), into Wisconsin in a vehicle operated by the person that sells the property or items that are delivered.
Performing construction activities in Wisconsin.”
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