A 1992 Supreme Court decision (the Quill v. N. Dakota case) attempted to address the issue of internet transactions. According to the Tax Foundation, the Quill decision said that a business "must have a physical presence in a state in order to require the collection of sales or use tax for purchases made by in-state customers." This physical presence is called a tax nexus. The tax nexus concept originally meant a physical building, office, warehouse, retail store, or employees selling in the state.
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