Physical Nexus
/ˈfɪzɪkəl ˈnɛksəs/
Definitions
- (n.) A sufficient connection between a person or entity and a jurisdiction that justifies the jurisdiction's authority to tax or regulate that individual or entity.
The company established a physical nexus in the state by maintaining a warehouse there, subjecting it to local sales tax.
Forms
- physical nexus
Related terms
See also
Commentary
Physical nexus is a foundational concept in tax law distinguishing tangible presence from economic presence; it is often contrasted with economic nexus in state taxation contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.