Washington (April 29, 2002) -- There's a significant variance among U.S. states in the types of activities that will create nexus for corporate income tax purposes, according to a new BNA Tax Management 2002 Survey of State Tax Departments.


The Survey reports the responses sent to top state revenue department personnel in the 46 states with a state corporate income tax, as well as the District of Columbia and New York City.


The survey found that an overwhelming majority of states agree that telecommuting employees will create nexus in the state of their employer.  Forty-one states said that in-state collection of delinquent accounts by employees creates nexus.  Traveling though a state more than six times per year in taxpayer-owned trucks

without picking up or delivering goods will create nexus in 11 states while increasing the frequency of such trips to more than 12 times per year creates nexus in 16 of the responding states.


  Other findings include:


·        Credit Cards.  Issuing credit cards to residents of a state creates nexus in 18 states.


·        Trademarks.  29 states said that licensing a trademark or trade name to a related party within a location in the state creates nexus.


·        Registering to Do Business.  6 states said that registering to do business is sufficient to create nexus in their state.


-- Electronic Accountant Newswire staff


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