Dems keep lying. I just saw that if you live in Blue States your tax refunds didn’t go up but went down, but if you lived in Red States your tax refunds went up…. Hmmm, and they keep trying to tell you that it’s Trump? The truth is that these progressive ‘Tax and Spend’ Liberals are obviously piggy backing additional taxes on top to the President’s policies and then blaming President Trump’s tax incentives as lies, but I think nowhere near the level of the Dems lies about Obamacare when they told the American people that if they loved their doctor they could keep their doctor, and if you love your Healthcare Plan that you can keep your Healthcare Plan!
With it being Tax Day and my son in law being my tax guy, along with him being ‘The’ Tax guy for some big companies in both Indiana and Ohio, he told me about the hang up with my taxes. It starts with my old employer in good old New Jersey, one of the highest taxed Liberal States where I lived for over 60 years, and lived in one of the highest taxed towns in the State of New Jersey for those 60 years!
Four years ago, I retired and moved to be closer to my kids in Ohio. Six months later I was called by that company and asked if I would be interested in telecommuting full time from Ohio, and I agreed, and I started the 3-year extended stay program with them sending me the computer etc. to get’er done. Like any job the withheld my city, local and state taxes for the state of Ohio, and obviously my Federal and everything that’s included in that.
Last Spring/Summer I was called by my companies representative who was part of the payroll team that starting January 1, 2019 that they would be deducting New Jersey taxes instead of my home of Ohio taxes where I live and that I would have to deal with my Ohio tax responsibility on my own. When I told them that isn’t possible they said that the lawyers had decided that based on their intent and interpretation of the ‘Nexus’ Law that they could unconstitutionally in my mind, subject all those in the same boat to the good old ‘Taxation without representation’ theft of the American taxpayer’s money because they remotely work outside the physical location of Corporate Headquarters! Talk about a double standard, now we have ‘Double Taxation’ by having to pay the taxes to the state you live and vote in for the services your state supplies through those deductions that are being taken out of those paychecks!
I immediately called my accountant guy and my Investment guy who not only is in New Jersey, but basically right next door to where my corporate offices were in Ridgewood New Jersey and had been doing it for not only decades but were also my parents’ advisor for all those years also. I gave both a call back then to see if they knew about this and both said what I thought, “No Way Jose!” Talk about the good old Boston Tea Party’s ‘Taxation Without Representation!’
My taxes are straight forward every year with the same deductions etc., but when my Daughter and her husband were up from Indiana just this past Saturday for a get together, and because it was 2 days before Tax Day, I asked him where I stood on my tax return? He told me that the company I was working for remotely wasn’t starting to take New Jersey taxes on January 1, 2019, but did it from January 1, 2018, which means the taxes I assumed I was automatically paying in Ohio weren’t paid at all! ~~
What in the Hell is NEXUS?
Unconstitutional Intent and Interpretation of the Law?
There’s a new game Democrats are playing now, and it’s the ‘end justifies the means game that especially holds true when it comes to stealing the election in Florida, and then trying to unseat Ted Cruz in Texas. Both states don’t have an income tax, and if they could steal the Senate race and the Governor race then I’m guessing they’ll be stealing the residents of those states money through the implementation of a new State income tax law where the residence of those states will now be forced to pony up to pay for the entitlements that are sucking every individual city and state treasuries dry!
Another tax collecting strategy by these high taxed ‘Blue’ states like California, New York, and New Jersey is to use, like Obama, with Holder and Lynch did to bypass the ‘Rule of Law’ and Constitution by using intent and interpretation, is now the same way Blue states are using the same intent and interpretation to apply the ‘Nexus Law’ to taxpayer employees who don’t physically work in the states where the corporation presides, but making those out of state employees pay those state taxes where they don’t receive the services of that state, and on top of that don’t get a vote in that state that’s spending their money!
Talk about unconstitutional, talk about taxation without representation, talk about paying for someone else’s state and local services for things like roads, maintenance, garbage collection etc., and then not being able to have a say in that state, just goes to show you why the Dems are trying to steal the election of these states that don’t charge and income tax like Florida and Texas where a lot of these deserters of high taxed states are now moving to get away from the illegal supporting over taxing done by these ‘Blue’ States! This is what’s going on in Broward County Florida, in the Governor’s race in Georgia, and the failed attempt in Texas to spend the largest amount of money historically during a Midterm election to unseat Senator Ted Cruz!
What is Nexus?
Nexus, also known as enough physical presence, is the determining factor of whether an out-of-state business selling products into a state is liable for collecting sales or use tax on sales into the state. Nexus is required before a taxing jurisdiction can impose its taxes on an entity.
Nexus is created if your company maintains a temporary or permanent presence of people (employees, service people or independent sales/service agents) or property (inventory, offices, warehouses). The temporary presence is created through traveling people visiting states to call on customers or prospects, trade show attendance, or consigned inventory in warehouses.
Nexus is created once a substantial physical presence is established. Unfortunately, this is not clearly defined by each state and can vary from 1 day to several days in other states. The number of days that can create nexus can also vary based on the activity performed in the state. Nexus means a business entity has established a direct or representational presence within a state or jurisdiction. This presence gives the state the right to require a company to pay or collect and remit certain taxes.
Nexus determination is controlled by the U.S. Constitution under the Due Process Clause and the Commerce Clause. The Due Process Clause requires a definite link or minimum connection between the state and the person, property or transaction it seeks to tax. However, the Commerce Clause requires a higher level of connection. The Commerce Clause requires a substantial presence in a taxing state by the entity the state desires to tax.
The United States Supreme Court along with various state level courts has shaped the interpretation of nexus over the history of the sales tax.
Today, most states define nexus under their definition of a retailer engaged in business as “maintaining, occupying, or using permanently or temporarily, directly or indirectly or through a subsidiary, an office, place of distribution, sales or sample room or place, warehouse or storage place or other place of business.” The definitions also include activities by individuals including, “having a representative, agent, salesman, canvasser, or solicitor operating in this state under the authority of the retailer or its subsidiary on a temporary or permanent basis.”
There are two specific types of nexus that apply to remote sellers making sales into other states. These are called “click-through nexus” and “affiliate nexus.” With the onset of online retailers, many states have passed “click-through nexus” and “affiliate nexus” legislation in an effort to impose sales tax on sales made by online retailers. These types of legislation vary by state but often have typical attributes.
Click-Through nexus legislation typically requires that a remote seller meets a minimum sales threshold in the state in question resulting from activities of an in-state referral agent. The seller must be making commission payments to the in-state resident for any orders that come about as a result of the click-through referral from the resident’s website.
Affiliate nexus legislation typically requires that a remote retailer holds a substantial interest in, or is owned by, an in-state retailer and the retailer sell the same or a substantially similar line of products under the same or a similar business name, or the in-state facility/employee is used to advertise, promote, or facilitate sales to an in-state consumer. The legislation may not always require common ownership. And it may include activities related to sales, delivery, service and maintaining a place of business in the state on behalf of the out of state business to benefit the out of state business’ customers.
The Multistate Tax Commission (MTC) had negotiated a special deal for online sellers that may have sales and income tax obligations from previous unpaid taxes in 25 different states. The MTC put together a special amnesty initiative program for online sellers that ran from August 17, 2017 to November 1, 2017. The program is now over. If you didn’t take advantage of the program but realize you need to evaluate your activities, you can contact us here.