Nexus: A Four-Point Refresher
16 years after Quill, use-tax collection technicalities still can get you
2. Agency Nexus
The Supreme Court ruled back in 1960 that if an out-of-state retailer uses an in-state agent to perform services on its behalf, the agent’s physical presence will cause the remote seller to have nexus in the state. This is referred to as “attributional nexus.”
Some types of agency relationships are quite obvious. A sales rep will create nexus, even if the rep is an independent contractor who is compensated on a commission basis and who makes sales on behalf of multiple companies (i.e., not an exclusive sales rep).
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