Super Sadie, Incorporated, manufactures sandals and distributes them across the southwestern United States. Super Sadie is incorporated and headquartered in Arizona. It has product sales to customers in Arizona, California, Colorado, New Mexico, Oregon, Texas, and Utah. In each state it has sales of less than $100,000 on under 200 transactions. It has sales personnel in California, Colorado, and New Mexico. It also owns an office building in Arizona and a warehouse in Texas. Determine the states in which Super Sadie has sales tax nexus.
What will be an ideal response?
Arizona, California, Colorado, New Mexico, and Texas.
Sales tax nexus exists in Arizona because of domicile. Sales tax nexus exists in California, Colorado, and New Mexico because of sales personnel. Sales tax nexus exists in Texas because of property. No sales tax nexus exists in Oregon and Utah because physical presence isn't met and economic nexus doesn't apply because sales thresholds aren't met.
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