Do Independent Agents & Contractors create Nexus?

In this blog we explore the state positions on whether or not independent contractors create nexus. In many states it depends on what activities contractors do and how much authority you have over them. Sales tax nexus is created in almost every state when a contractor performs the duties of a sales representative. However, other activities, such as warranty repair, only create a nexus occasionally.

What is nexus, exactly?

Nexus is established when a businesses crosses or meets a state threshold that then obligates them to register, assess, & remit sales tax. Nexus can be established in a variety of ways for each state -- physical, economic, affiliate, marketplace, click-through just to name a few. If you are a company with a physical presence in the state and have employees there, it's easy to establish nexus.

However, when your business pays contractors, agents, representatives, or other types of agents (who aren't considered an employee) for services in another state, the situation becomes more complicated.

Let’s look at each state:

Alabama

Does hiring independent contractors in Alabama create a sales tax nexus?

In Alabama, hiring independent contractors usually creates a sales tax nexus.

How can hiring independent contractors in Alabama create a sales tax nexus?

Alabama requires that any seller who has independent contractors working in Alabama to make a sale, or to create a profit register with and collect the sales tax. This is due to a substantial connection to the state. Alabama believes using contractors of any type would constitute maintaining a presence within the state, even if you don't have employees there. The ruling is based on Graduate Supply House, Inc., 1620 N. Mill Street Jackson, MS, 39202-1535, taxpayer, State Of Alabama Department Of Revenue.,S. 05-751,11/20/2007 that stated the Quill Corp., v. North Dakota decision allowed states to create substantial nexus requirements with sellers who had independent contractors within their state.

What is the best place to find out more information about Alabama's Sales Tax Nexus?

Ala. Code SS SS40-2368(3) and Ala. Code SS SS40-2368(9) will help you learn how Alabama contractors can establish sales tax nexus.

Arizona

Does hiring independent contractors in Arizona create a sales tax nexus?

In Arizona, hiring independent contractors will generally result in a nexus with sales tax.

How can hiring independent contractors in Arizona create a sales tax nexus?

Arizona decided in 2016 that an independent contractor in Arizona could satisfy the substantial-nexus requirements if they resided in Arizona at least two days in any given year. All contractors would be covered, regardless of their activity. This ruling was rescinded when economic nexus legislation passed in 2019. Since economic nexus usually involves a different topic, it seems reasonable that the prior ruling on independent contractors would still be consistent with Arizona's current laws.

What is the best place to find out more information about Arizona's Sales Tax Nexus?

Read the Recession Arizona TPT Rule 16-1 to learn how contractors in Arizona can establish sales tax nexus.

Arkansas

Does hiring independent contractors in Arkansas create a sales tax nexus?

In Arkansas, hiring independent contractors will generally result in a nexus with sales tax.

How can hiring independent contractors in Arkansas create a sales tax nexus?

Arkansas requires that any seller who has independent contractors working in Arkansas with the intention of selling or making profit must register for sales tax and collect it due to a substantial connection to the state. Even if the contractor facilitates a simple transfer of goods, without transferring money, the contractor will create substantial nexus with the state. However, it is not clear if an Arkansas contractor who does exist but only for the purposes above will create a substantial nexus.

What is the best place to find out more information about whether or not hiring independent contractors in Arkansas creates a sales tax nexus?

Ark. Code Ann. Code Ann.

California

Does hiring independent contractors in California create a sales tax nexus?

If you're a California retailer, hiring contractors can create a sales tax nexus.

How can hiring independent contractors in California create a sales tax nexus?

California requires that retailers with independent contractors who are in the state "for the purposes of selling tangible personal property, delivering it, installing it, assembling or taking orders" register and collect the sales tax. This is due to a substantial connection to the state. This requirement applies to retailers and not to any other seller. If you don't sell directly to end users, you may not be subject to these rules. However, it is unclear if an independent contractor who does not have a California business for the purposes listed above will create a substantial nexus.

What is the best place to find out more information about California's Sales Tax Nexus?

Cal. Rev. & Tax. Cd. SS 6203 (c)(2).

Colorado

Does hiring independent contractors in Colorado create a sales tax nexus?

In Colorado, hiring independent contractors usually creates a sales tax nexus.

How can hiring independent contractors in Colorado create a sales tax nexus?

Colorado requires that any seller who has independent contractors working in Colorado to make a sale, or to create a profit must register with and collect the sales tax. This is due to a substantial nexus (specifically "direct or indirect agents or manufacturers' representatives" within the state). However, it is not clear if an independent contractor who does exist in Colorado but doesn't serve the purposes listed above will create substantial nexus.

What is the best place to find out more information about Colorado's Sales Tax Nexus?

Colo. Rev. contains more information about the ways in which contractors may be able to create a sales tax nexus by contacting them. Stat. SS 39-26-2102(3), or Colorado's Sales Tax Guide.

Connecticut

Does hiring independent contractors in Connecticut create a sales tax nexus?

In Connecticut, hiring independent contractors creates a sales tax nexus.

How does hiring independent contractors in Connecticut create a sales tax nexus?

Connecticut requires that any seller who has independent contractors working in Connecticut to make a sale, deliver goods or take orders must register for sales tax and collect it due to a substantial connection with the state. Connecticut laws also require that any seller with a contractor who is maintaining a warehouse, office or another place for distribution, sample room, etc., register and collect sales tax. Contractors that enter Connecticut to service or repair any products under warranty create a substantial nexus with the seller. However, it is not clear if an unregistered contractor who enters Connecticut for the purposes listed above will create a substantial nexus.

What is the best place to find out more information about Connecticut's Sales Tax Nexus?

Read Conn. General Stat. to learn how Connecticut contractors can establish sales tax nexus. SS 12-407 (a) (15)(A), Conn. General Stat. SS 12-407 (a) (15)(A), or read Scholastic Book Clubs, Inc. v. Comm'r Revenue Servs., 304 Conn 204, 38 A3d 11,83, March 27, 2012, to learn how people who are not independent contractors, but may be referred to as such, can have nexus with sales tax.

District of Columbia

Does hiring independent contractors result in a sales tax nexus with the District of Columbia for you?

In the District of Columbia, hiring independent contractors will generally result in a nexus with sales tax.

How can hiring independent contractors create a sales tax nexus in District of Columbia for you?

In general, the District of Columbia requires that any seller who has contractors (salesmen or representatives, peddlers and agents, dealers etc.) registers for sales tax. Due to a substantial connection with the District of Columbia, any seller who has a contractor for the purposes of delivering goods or accepting orders in the District of Columbia must register and collect the sales tax. The laws of the District of Columbia create substantial nexus also for sellers who have a contractor to maintain an office, warehouse or any other distribution center or location. However, it is not clear if an independent contractor who does exist in District of Columbia for the purposes listed above will create substantial nexus.

Where do you find out more information about the District of Columbia's Sales Tax Nexus?

D.C. Code Ann. will tell you more about the ways in which contractors may create a sales tax nexus within District of Columbia. SS 47-2201 (g) and D.C. Code Ann. SS47-2201(h).

Florida

Does hiring independent contractors in Florida create a sales tax nexus?

In Florida, hiring independent contractors can create a sales tax nexus.

How can hiring independent contractors in Florida create a sales tax nexus?

Florida requires that any seller who has a contractor (agent) working in Florida to make a sale, deliver goods or take orders must register for sales tax and pay it. This is due to nexus. Florida's laws also establish nexus with sellers who have a relationship sufficient to create substantial nexus. Contractors that enter Florida to service or repair any item under warranty create a substantial nexus as well. However, it is not clear if an individual contractor who does exist in Florida but only for the purposes mentioned above will create substantial nexus.

What is the best place to find out more information about hiring independent contractors and sales tax in Florida?

Fla. Stat. contains more information about the sales tax nexus that contractors in Florida can have. SS 212.0596(2) (c) and Fla. Stat. SS 212.0596(2) (l), Fla. Admin. Code Ann. Code Ann. Code Ann. 12A-1.060.

Georgia

Does hiring independent contractors in Georgia create a sales tax nexus?

In Georgia, hiring independent contractors will generally result in a taxable sales nexus.

How can hiring independent contractors in Georgia create a sales tax nexus?

Georgia requires that any seller who has contractors (sales agent) working in Georgia to make a sale, deliver goods or take orders must register for sales tax and collect it due to nexus. Georgia laws also give sellers substantial nexus if they conduct any activity that is directly related to their ability to maintain and establish a market within the state. Contractors who come to Georgia for warranty repairs or services also have a substantial connection with the seller. However, it is not clear if an Georgia contractor who does exist but only for the purposes listed above will create substantial nexus.

What is the best place to find out more information about Georgia's tax laws regarding independent contractors?

Ga. Code Ann. contains more information about the sales tax nexus that contractors in Georgia can have. Ga. Code Ann. and SS 48-8-2(8) (H). SS 48-8-2(8) (L).

Hawaii

Does hiring independent contractors in Hawaii create a sales tax nexus?

In Hawaii, hiring independent contractors will generally result in a nexus with sales tax.

How does hiring independent contractors in Hawaii create a sales tax nexus?

Hawaii requires that sellers with independent contractors who are in Hawaii to generate sales, gross receipts, net profits, and/or to make a profit must register for sales tax. This is due to a substantial connection to the state. Hawaii ruled in 1995 that companies who hired contractors to perform warranty repairs in Hawaii had a substantial nexus with the state. It isn't 100% certain, but it could be that other types of contractors would also create a substantial nexus. Given the logic behind the ruling in 1995 - to generate sales, gross receipts, and net profits - most contractors are likely to create a substantial nexus with the companies they represent.

How can I learn more about the sales tax implications of hiring independent contractors in Hawaii?

Hawaii Tax Information Release No. 96-1, 01/24/1996 contains information about the ways in which contractors may be able to create a sales tax nexus. The information released after the ruling of December 20, 1995 is 96-1.

Idaho

Does hiring independent contractors in Idaho create a sales tax nexus?

In Idaho, you are generally liable for sales tax when you hire independent contractors.

Does hiring independent contractors in Idaho create a sales tax nexus?

Idaho requires that any seller who has independent contractors working in Idaho to generate sales, deliver goods, or take orders of personal tangible property within the state register and collect the sales tax. This is due to a substantial nexus. A 1994 state ruling further confirmed that these activities created nexus (Idaho State Tax Commission Decision, No. 7082, 06/29/1994). Installing or maintaining tangible personal property within the state may also be a substantial nexus. However, it is not clear if an Idaho contractor that doesn't exist to perform the above purposes would have a substantial nexus.

What is the best place to find out more information about whether hiring independent contractors in Idaho creates a sales tax nexus?

Please read Idaho Code Section SS 63-361(3)(b).

Illinois

Does hiring independent contractors in Illinois create a sales tax nexus?

In Illinois, hiring independent contractors can create a sales tax nexus.

How can hiring independent contractors in Illinois create a sales tax nexus?

Illinois requires that any seller who has independent contractors working in Illinois to generate sales, deliver goods, or take orders of personal tangibles in Illinois, for which they receive a commission, register for and collect the tax. This is due to a substantial connection with the state. Illinois appears to believe that regardless of the activities being performed, whether or not the agent has a license in the State, and regardless of the temporary or permanent nature of the agent, they can create a substantial nexus with the State by virtue of their presence.

How can I learn more about the sales tax implications of hiring independent contractors in Illinois?

ILCS SS 105/2 & Ill. Admin. can help you learn how Illinois contractors can establish sales tax nexus. Code 150.201.

Indiana

Does hiring independent contractors in Indiana create a sales tax nexus?

In Indiana, hiring independent contractors creates a sales tax nexus.

How can hiring independent contractors create a sales tax nexus in Indiana for you?

Indiana requires that any seller who has independent contractors working in Indiana to generate sales, deliver goods, or take orders of personal tangible property, services, to collect and register sales tax. This is due to a substantial connection with the state. Installing or maintaining personal tangibles in Indiana can create a substantial nexus. Invoicing or billing services and property to be used within Indiana may also create substantial nexus. However, it is not clear if an Indiana contractor that doesn't exist to perform the above purposes would be considered a substantial nexus.

What is the best place to find out more information about Indiana's Sales Tax Nexus?

Read Ind. to learn how Indiana contractors can establish sales tax nexus. Code SS 62.5-2-1 (c).

Iowa

Does hiring independent contractors in Iowa create a sales tax nexus?

In Iowa, hiring independent contractors usually creates a sales tax nexus.

Does hiring independent contractors in Iowa create a sales tax nexus?

Iowa requires that any seller who has independent contractors working in Iowa to make a sale, deliver goods or take orders must register for sales tax and collect it due to a substantial connection with the state. Iowa laws also impose substantial nexus on any seller that conducts activities which are directly related to the ability of the seller to maintain and establish a market within the state. Sellers who come to Iowa for the purpose of installing, repairing, or servicing tangible physical property will also have a substantial nexus. However, it is not clear if this would apply to contractors who perform the same work (installing or repairing tangible physical property) It is also unclear whether a contractor who does not exist in Iowa for the purposes listed above will create a substantial nexus.

What is the best place to find out more information about whether or not hiring independent contractors in Iowa creates a sales tax nexus?

Iowa Code SS 423.1-48 and Iowa Admin. Code SS 701-30.1(1).

Kansas

Does hiring independent contractors in Kansas create a sales tax nexus?

In Kansas, hiring independent contractors will generally result in a nexus with sales tax.

Does hiring independent contractors in Kansas create a sales tax nexus?

Kansas requires that sellers with independent contractors who are in Kansas to make a sale, deliver goods or take orders must register for sales tax and collect it due to a substantial connection to the state. Contractors who come to Kansas for warranty repairs or services or installation of tangible physical property will also have a substantial nexus with the seller. Kansas states that if a retailer contacts the state, The U.S. Constitution allows Kansas to enforce nexus. The retailer will have nexus in Kansas. However, it is not clear if an individual contractor who does exist in Kansas but doesn't serve the purposes above will create a substantial nexus.

What is the best place to find out more information about Kansas sales tax and independent contractors?

Kan. Stat. contains more information about the sales tax nexus that contractors in Kansas can have. Ann. SS 79-3700(h), Kan. Admin. Regs. SS 92-20-7 and Kansas Information Guide no. KS-1510, , 12/31/2020.

Kentucky

Will hiring independent contractors create sales tax nexus for you in Kentucky?

Hiring independent contractors generally creates sales tax nexus for you in Kentucky.

Why will hiring independent contractors generally create sales tax nexus for you in Kentucky?

Kentucky generally requires any sellers who have independent contractors in the state of Kentucky for the purpose of making a sale or delivering or taking orders to register and collect sales tax due to substantial nexus with the state. In addition, the laws in Kentucky also create substantial nexus for any seller who conducts any activities that would be significantly associated with the seller's ability to establish and maintain a market in the state of Kentucky regardless of whether that contractor is part-time or full-time. Even a contractor whose sole responsibility is to repair or service merchandise or to receive or exchange returned merchandise can create substantial nexus for an out-of-state retailer. It is unclear however if a contractor in Kentucky that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Kentucky?

You can learn more about how contractors can create sales tax nexus in Kentucky by reading Ky. Rev. Stat. Ann. SS 139.340(2).

Louisiana

Will hiring independent contractors create sales tax nexus for you in Louisiana?

Hiring independent contractors generally creates sales tax nexus for you in Louisiana.

Why will hiring independent contractors generally create sales tax nexus for you in Louisiana?

Louisiana generally requires any sellers who have independent contractors in the state of Louisiana for the purpose of establishing and maintaining a market for the retailer in Louisiana to register and collect sales tax due to substantial nexus with the state. This has been heavily debated in Louisiana as evidenced by two rulings each dealing with a retailer having a contractor performing computer repair services but both rulings ended up having different conclusions on the matter. In one case in 2001, it was determined those computer repair services were not for the purpose of establishing and maintaining a market for the retailer (Quantex). In another case in 2006, it was determined that computer repair services were for the purpose of establishing and maintaining a market for the retailer (Dell) and that the retailer would thereby have substantial nexus with the state of Louisiana.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Louisiana?

You can learn more about how contractors can create sales tax nexus in Louisiana by reading State of Louisiana and Secretary of the Department of Revenue and Taxation, v. Quantex Microsystems, Inc., 809 So 2d 246, 07/03/2001 and by reading State of Louisiana and Secretary of the Department of Revenue and Taxation v. Dell International, Inc., et al., 922 So 2d 1257, 02/15/2006.

Maine

Will hiring independent contractors create sales tax nexus for you in Maine?

Hiring independent contractors generally creates sales tax nexus for you in Maine.

Why will hiring independent contractors generally create sales tax nexus for you in Maine?

Maine generally requires any sellers who have independent contractors in the state of Maine for the purpose of making a sale or delivering or taking orders to register and collect sales tax due to substantial nexus with the state. Maine also states that if the retailer has any contact with the state that The U.S. Constitution would allow Maine to enforce nexus with the retailer, the retailer would have nexus with Maine. It is unclear however if a contractor in Maine that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Maine?

You can learn more about how contractors can create sales tax nexus in Maine by reading Me. Rev. Stat. Ann. 36 SS 1754-B and Maine Instructional Bulletin, No. 43, 11/19/2018.

Maryland

Will hiring independent contractors create sales tax nexus for you in Maryland?

Hiring independent contractors generally creates sales tax nexus for you in Maryland.

Why will hiring independent contractors generally create sales tax nexus for you in Maryland?

Maryland generally requires any sellers who have independent contractors in the state of Maryland for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Maryland. Having an agent be responsible for maintaining a place for the storage of products for the sale of that property or taxable services can also create substantial nexus in the state.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Maryland?

You can learn more about how contractors can create sales tax nexus in Maryland by reading Md. Code Ann. Tax-Gen. § 11-701(b) and Md. Code Ann. Tax-Gen. § 11-101(o).

Massachusetts

Will hiring independent contractors create sales tax nexus for you in Massachusetts?

Hiring independent contractors generally creates sales tax nexus for you in Massachusetts.

Why will hiring independent contractors generally create sales tax nexus for you in Massachusetts?

Massachusetts generally requires any sellers who have independent contractors in the state of Massachusetts for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, delivering personal tangible property or performing taxable services in the state can also create substantial nexus in Massachusetts. It is unclear however if a contractor in Massachusetts that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Massachusetts?

You can learn more about how contractors can create sales tax nexus in Massachusetts by reading Mass. Gen. L. Chapter 64H § 1.

Michigan

Will hiring independent contractors create sales tax nexus for you in Michigan?

Hiring independent contractors generally creates sales tax nexus for you in Michigan.

Why will hiring independent contractors generally create sales tax nexus for you in Michigan?

Michigan generally requires any sellers who have independent contractors in the state of Michigan for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Michigan. Using an agent to own, rent, lease, use, or maintain a place of business on your behalf can also create substantial nexus. It is unclear however if a contractor in Michigan that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Michigan?

You can learn more about how contractors can create sales tax nexus in Michigan by reading Michigan Revenue Administrative Bulletin No. 1999-1, 05/12/1999.

Minnesota

Will hiring independent contractors create sales tax nexus for you in Minnesota?

Hiring independent contractors generally creates sales tax nexus for you in Minnesota.

Why will hiring independent contractors generally create sales tax nexus for you in Minnesota?

Minnesota generally requires any sellers who have independent contractors in the state of Minnesota for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Minnesota. It is unclear however if a contractor in Minnesota that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Minnesota?

You can learn more about how contractors can create sales tax nexus in Minnesota by reading Minn. Stat. § 297A.66, Subdivision 1(a)(2) and Minnesota Revenue Notice, No. 19-03, 09/30/2019.

Mississippi

Will hiring independent contractors create sales tax nexus for you in Mississippi?

Hiring independent contractors generally creates sales tax nexus for you in Mississippi.

Why will hiring independent contractors generally create sales tax nexus for you in Mississippi?

Mississippi generally requires any sellers who have independent contractors in the state of Mississippi for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Mississippi. Any independent contractor who performs taxable services in the state can also create substantial nexus for you in Mississippi. It is unclear however if a contractor in Mississippi that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Mississippi?

You can learn more about how contractors can create sales tax nexus in Mississippi by reading Miss. Code Ann. § 27-67-3(j) and Miss. Code Ann. § 27-65-9(3).

Missouri

Will hiring independent contractors create sales tax nexus for you in Missouri?

Hiring independent contractors generally creates sales tax nexus for you in Missouri.

Why will hiring independent contractors generally create sales tax nexus for you in Missouri?

Missouri generally requires any sellers who have independent contractors in the state of Missouri for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. If you have a contractor in Missouri that is not a sales agent, you may still be considered “to be doing business in the state” if you meet Missouri’s definition of vendor. Missouri considers any out-of-state business doing more than $500,000 of sales in Missouri and at least $12.5 million of sales in the United States to be a vendor in Missouri. If you are over those two sales thresholds and thereby considered a vendor in Missouri, any independent contractor residing in the state would create substantial nexus for you in Missouri. If you do not meet those thresholds, it is unclear if a contractor who is not performing sales activities would create nexus for you in Missouri.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Missouri?

You can learn more about how contractors can create sales tax nexus in Missouri by reading Mo. Code Regs. 12 § 10-114.100(2)(B).

Nebraska

Will hiring independent contractors create sales tax nexus for you in Nebraska?

Hiring independent contractors generally creates sales tax nexus for you in Nebraska.

Why will hiring independent contractors generally create sales tax nexus for you in Nebraska?

Nebraska generally requires any sellers who have independent contractors in the state of Nebraska for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, having an independent contractor perform taxable services on your behalf in the state can also create substantial nexus in Nebraska. Contractors performing banking, financing, debt collection, or marketing activities within Nebraska can also create substantial nexus for you as well. It is unclear however if a contractor in Nebraska that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Nebraska?

You can learn more about how contractors can create sales tax nexus in Nebraska by reading Neb. Admin. R. & Regs. § 1-004.02 and Neb. Rev. Stat. § 77-2703.

Nevada

Will hiring independent contractors create sales tax nexus for you in Nevada?

Hiring contractors might create sales tax nexus for you in Nevada.

Why do contractors generally not create sales tax nexus for you in Nevada?

In general, hiring independent contractors who only make sales in Nevada will not create sales tax nexus. There is the potential that contractors in Nevada could fall within the definition of “engaging in business” in the state which could create sales tax nexus for the business.

Where can you go to learn more about how contractors generally do not create sales tax nexus in Nevada?

You can learn more about how contractors can create sales tax nexus in Nevada by reading Nev. Rev. Stat. § 80.015.

New Jersey

Will hiring independent contractors create sales tax nexus for you in New Jersey?

Hiring independent contractors generally creates sales tax nexus for you in New Jersey.

Why will hiring independent contractors generally create sales tax nexus for you in New Jersey?

New Jersey generally requires any sellers who have independent contractors in the state of New Jersey for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in New Jersey. Any contractors who work in New Jersey as representatives of your company can create substantial nexus for you in New Jersey. It is unclear however if a contractor in New Jersey that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in New Jersey?

You can learn more about how contractors can create sales tax nexus in New Jersey by reading N.J. Rev. Stat. § 54:32B-2(i) and New Jersey Division of Taxation Technical Bulletin, No. TB-78, 07/30/2015.

New Mexico

Will hiring independent contractors create sales tax nexus for you in New Mexico?

Hiring independent contractors generally creates sales tax nexus for you in New Mexico.

Why will hiring independent contractors generally create sales tax nexus for you in New Mexico?

New Mexico generally requires any sellers who have independent contractors in the state of New Mexico for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. It is unclear however if a contractor in New Mexico that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in New Mexico?

You can learn more about how contractors can create sales tax nexus in New Mexico by reading NMSA 1978 § 7-9-10 and Dell Catalog Sales L.P. v. Taxation and Revenue Department of the State of New Mexico, 199 P.3d 863, 06/03/2008.

New York

Will hiring independent contractors create sales tax nexus for you in New York?

Hiring independent contractors generally creates sales tax nexus for you in New York.

Why will hiring independent contractors generally create sales tax nexus for you in New York?

New York generally requires any sellers who have independent contractors in the state of New York for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. It is unclear however if a contractor in New York that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in New York?

You can learn more about how contractors can create sales tax nexus in New York by reading NYCRR 20 § 526.10(a) and N.Y. Tax Law § 1101(b)(8).

North Carolina

Will hiring independent contractors create sales tax nexus for you in North Carolina?

Hiring independent contractors generally creates sales tax nexus for you in North Carolina.

Why will hiring independent contractors generally create sales tax nexus for you in North Carolina?

North Carolina generally requires any sellers who have independent contractors in the state of North Carolina for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. It is unclear however if a contractor in North Carolina that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in North Carolina?

You can learn more about how contractors can create sales tax nexus in North Carolina by reading N.C. Gen. Stat. § 105-164.3(83).

North Dakota

Will hiring independent contractors create sales tax nexus for you in North Dakota?

Hiring independent contractors generally creates sales tax nexus for you in North Dakota.

Why will hiring independent contractors generally create sales tax nexus for you in North Dakota?

North Dakota generally requires any sellers who have independent contractors in the state of North Dakota for the purpose of generating sales, deliveries, or taking orders for personal tangible property in the state for which the sales agent receives a commission to register and collect sales tax due to substantial nexus with the state. Further, it appears North Dakota believes that any agent regardless of what activities are being carried out creates substantial nexus by their presence in the state and the fact that they are representing your company by being under your authority.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in North Dakota?

You can learn more about how contractors can create sales tax nexus in North Dakota by reading N.D. Cent. Code § 57-40.2-01(7).

Ohio

Will hiring independent contractors create sales tax nexus for you in Ohio?

Hiring independent contractors generally creates sales tax nexus for you in Ohio.

Why will hiring independent contractors generally create sales tax nexus for you in Ohio?

Ohio generally requires any sellers who have independent contractors in the state of Ohio for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Ohio. Any contractors who provide training in the state or otherwise resolve customer complaints or provide customer assistance can also create nexus in the state of Ohio. It is unclear however if a contractor in Ohio that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Ohio?

You can learn more about how contractors can create sales tax nexus in Ohio by reading Ohio Tax Information Release No. ST 2001-01, 10/01/2017.

Oklahoma

Will hiring independent contractors create sales tax nexus for you in Oklahoma?

Hiring independent contractors generally creates sales tax nexus for you in Oklahoma.

Why will hiring independent contractors generally create sales tax nexus for you in Oklahoma?

Oklahoma generally requires any sellers who have independent contractors in the state of Oklahoma for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Oklahoma. The laws in Oklahoma also create substantial nexus for any seller who conducts any activities that would be significantly associated with the seller’s ability to establish and maintain a market in the state of Oklahoma. It is unclear however if a contractor in Oklahoma that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Oklahoma?

You can learn more about how contractors can create sales tax nexus in Oklahoma by reading Okla. Admin. Code § 710:65-1-8(b).

Pennsylvania

Will hiring independent contractors create sales tax nexus for you in Pennsylvania?

Hiring independent contractors generally creates sales tax nexus for you in Pennsylvania.

Why will hiring independent contractors generally create sales tax nexus for you in Pennsylvania?

Pennsylvania generally requires any sellers who have independent contractors in the state of Pennsylvania for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Pennsylvania. It is unclear however if a contractor in Pennsylvania that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Pennsylvania?

You can learn more about how contractors can create sales tax nexus in Pennsylvania by reading Pa. Stat. Ann. 72 § 7201(b) and Pa. Code 61 § 56.1(b).

Rhode Island

Will hiring independent contractors create sales tax nexus for you in Rhode Island?

Hiring independent contractors generally creates sales tax nexus for you in Rhode Island.

Why will hiring independent contractors generally create sales tax nexus for you in Rhode Island?

Rhode Island generally requires any sellers who have independent contractors in the state of Rhode Island for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. It is unclear however if a contractor in Rhode Island that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Rhode Island?

You can learn more about how contractors can create sales tax nexus in Rhode Island by reading R.I. Gen. Laws § 44-18-23.

South Carolina

Will hiring independent contractors create sales tax nexus for you in South Carolina?

Hiring independent contractors generally creates sales tax nexus for you in South Carolina.

Why will hiring independent contractors generally create sales tax nexus for you in South Carolina?

South Carolina generally requires any sellers who have independent contractors in the state of South Carolina for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in South Carolina. Any contractors who provide training in the state or otherwise resolve customer complaints or provide customer assistance can also create nexus in the state of South Carolina. It is unclear however if a contractor in South Carolina that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in South Carolina?

You can learn more about how contractors can create sales tax nexus in South Carolina by reading South Carolina Revenue Ruling 14-4, 09/10/2014.

South Dakota

Will hiring independent contractors create sales tax nexus for you in South Dakota?

Hiring independent contractors may create sales tax nexus in South Dakota.

Why will hiring independent contractors generally create sales tax nexus for you in South Dakota?

South Dakota does not specifically state that hiring independent contractors will create sales tax nexus in their state. However, you should be careful to ensure that hiring an independent contractor does not fall within the definition of “engaging in business” in the state or creating a “physical presence” in the state.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in South Dakota?

You can learn more about who needs a sales tax license in South Dakota on the Department of Revenue’s website.

Tennessee

Will hiring independent contractors create sales tax nexus for you in Tennessee?

Hiring independent contractors generally creates sales tax nexus for you in Tennessee.

Why will hiring independent contractors generally create sales tax nexus for you in Tennessee?

Tennessee generally requires any sellers who have independent contractors in the state of Tennessee for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Tennessee. Any independent contractor who performs taxable services in the state can also create substantial nexus for you in Tennessee. It is unclear however if a contractor in Tennessee that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Tennessee?

You can learn more about how contractors can create sales tax nexus in Tennessee by reading Tennessee Important Notice, No. 12/01/2002, 12/01/2002 and Arco Building Systems, Inc. v. Loren L. CHUMLEY et al., 06/12/2006.

Texas

Will hiring independent contractors create sales tax nexus for you in Texas?

Hiring independent contractors generally creates sales tax nexus for you in Texas.

Why will hiring independent contractors generally create sales tax nexus for you in Texas?

Texas generally requires any sellers who have independent contractors in the state of Texas for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. Any independent contractor who performs services in the state can also create substantial nexus for you in Texas. Using an agent to own, rent, lease, use, or maintain a place of business on your behalf can also create substantial nexus. It is unclear however if a contractor in Texas that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Texas?

You can learn more about how contractors can create sales tax nexus in Texas by reading Tex. Tax Code Ann. § 151.107(a) and Texas Tax Publication 94-108, Engaged in Business (Sales and Use Tax), Texas Comptroller of Public Accounts, 11/01/2016.

Utah

Will hiring independent contractors create sales tax nexus for you in Utah?

Hiring independent contractors generally creates sales tax nexus for you in Utah.

Why will hiring independent contractors generally create sales tax nexus for you in Utah?

Utah generally requires any sellers who have independent contractors in the state of Utah for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. It is unclear however if a contractor in Utah that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Utah?

You can learn more about how contractors can create sales tax nexus in Utah by reading Utah Informational Publication, No. 37, 09/01/2019 and Utah Informational Publication, No. 25, 11/01/2020.

Vermont

Will hiring independent contractors create sales tax nexus for you in Vermont?

Hiring independent contractors generally creates sales tax nexus for you in Vermont

Why will hiring independent contractors generally create sales tax nexus for you in Vermont?

Vermont generally requires any sellers who have independent contractors in the state of Vermont for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. It is unclear however if a contractor in Vermont that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Vermont?

You can learn more about how contractors can create sales tax nexus in Vermont by reading Vt. Stat. Ann. § 9701(9).

Virginia

Will hiring independent contractors create sales tax nexus for you in Virginia?

Hiring independent contractors generally creates sales tax nexus for you in Virginia.

Why will hiring independent contractors generally create sales tax nexus for you in Virginia?

Virginia generally requires any sellers who have independent contractors in the state of Virginia for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. It is unclear however if a contractor in Virginia that does not exist for those purposes listed above would create substantial nexus, but notably installation and repair services performed by an independent contractor in Virginia would likely not create substantial nexus for you in the state.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Virginia?

You can learn more about how contractors can create sales tax nexus in Virginia by reading Va. Code Ann. § 58.1-612(C)(2) and Virginia Public Document Ruling, No. 09-44, 04/27/2009.

Washington

Will hiring independent contractors create sales tax nexus for you in Washington?

Hiring independent contractors generally creates sales tax nexus for you in Washington.

Why will hiring independent contractors generally create sales tax nexus for you in Washington?

Washington generally requires any sellers who have independent contractors in the state of Washington for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Washington. The laws in Washington also create substantial nexus for any seller who conducts any other activities that would be significantly associated with the seller’s ability to establish and maintain a market in the state of Washington. It is unclear however if a contractor in Washington that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Washington?

You can learn more about how contractors can create sales tax nexus in Washington by reading Wash. Admin. Code 458-20-193.

West Virginia

Will hiring independent contractors create sales tax nexus for you in West Virginia?

Hiring independent contractors generally create sales tax nexus for you in West Virginia.

Why will hiring independent contractors generally create sales tax nexus for you in West Virginia?

West Virginia generally requires any sellers who have independent contractors in the state of West Virginia for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in West Virginia. It is unclear however if a contractor in West Virginia that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in West Virginia?

You can learn more about how contractors can create sales tax nexus in West Virginia by reading West Virginia Code of State Rules 110-15-2.78.

Wisconsin

Will hiring independent contractors create sales tax nexus for you in Wisconsin?

Hiring independent contractors generally creates sales tax nexus for you in Wisconsin.

Why will hiring independent contractors generally create sales tax nexus for you in Wisconsin?

Wisconsin generally requires any sellers who have independent contractors in the state of Wisconsin for the purpose of generating sales, deliveries, or taking orders for personal tangible property or services to register and collect sales tax due to substantial nexus with the state. In addition, installing, servicing, or repairing personal tangible property in the state can also create substantial nexus in Wisconsin. Any independent contractor who performs taxable services in the state can also create substantial nexus for you in Wisconsin. It is unclear however if a contractor in Wisconsin that does not exist for those purposes listed above would create substantial nexus.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Wisconsin?

You can learn more about how contractors can create sales tax nexus in Wisconsin by reading Wis. Stat. § 77.51(13g).

Wyoming

Will hiring independent contractors create sales tax nexus for you in Wyoming?

Hiring independent contractors generally creates sales tax nexus for you in Wyoming.

Why will hiring independent contractors generally create sales tax nexus for you in Wyoming?

Wyoming generally requires any sellers who have independent contractors in the state of Wyoming for the purpose of generating sales, deliveries, or taking orders for personal tangible property in the state for which the sales agent receives a commission to register and collect sales tax due to substantial nexus with the state. Further, it appears Wyoming believes that any agent regardless of what activities are being carried out creates substantial nexus by their presence in the state and the fact that they are representing your company by being under your authority.

Where can you go to learn more about how hiring independent contractors generally creates sales tax nexus in Wyoming?

You can learn more about how contractors can create sales tax nexus in Wyoming by reading Wyo. Stat. § 39-16-101(a)(x).


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