Legal Question in Tax Law in New Jersey
As far as sales tax goes how much inventory in a warehouse in a state is "significant nexus"? is 10 items enough, 100? dollar value?
1 Answer from Attorneys
Nexus is not an absolute quantity or action. It is not a certain amount of inventory or sales. The State of New Jersey tries to claim even the slightest activity as creating nexus in order to force companies to pay sales and use tax and also to have to file and pay New Jersey taxes. If inventory is being held as a temporary storage in transit to other states, such as a warehouse at a shipping dock, that is typically not considered doing business in New Jersey. On the other hand if it is a warehouse where items are then delivered to New Jersey residents, it may create nexus.
The best thing for you to do is to contact a good tax and business attorney to handle this matter.
Good luck!
Ron Cappuccio
www.TaxEsq.com
856-665-2121
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