State Tax Headlines

Factor presence nexus: A growing trend in state taxation

Many taxpayers and their advisers love to play in the gray areas of the law, push the envelope, find that loophole. Others want black-and-whiterules, certainty, and bright-line tests. For those latter taxpayers, and for state taxing authorities, the Multistate Tax Commission (MTC) developed the concept of “factor presence nexus” in October 2002. It was stated at the time to be “a simple, certain and equitable standard for the collection of state business activity taxes.”Full article here..

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