Multistate Tax Nexus

In some circles of human endeavors, if one mentions nexus, they would add an X to the spelling and comment that it is an excellent shampoo and hair conditioner. While a certain group of sorry souls would talk of multistate nexus while others in the group would ask if they mean state nexus. As with roses, nexus by any other name is still nexus that magical connection that obligates entities to pay a state tax to a foreign state.

The legal principles that birthed this concept began with the establishment of the US Constitution, but it is doubtful of any of its drafters would say it was even given thought.

Our time together will be filled with a peek into nexus, its origin in the Commerce Clause of the Constitution, the many court cases that have enumerated the 3 prongs found in that clause as well as its Harvey the Rabbit-the Dormant Commerce Clause. But the Constitution does not allow us to ignore its due process requirements.

So our time this morning is to track how nexus was born combined with the federal judicial decisions and with the statutory provisions of our Federal and state governments and quite possibly the changes that may be in the future.

Registration Form: 2024 Spring CPE Registration Form