SALT Flashcards
1
Q
What activities are sufficient to establish a nexus?
A
Approving/accepting orders;
Hiring/supervising employees other than sales staff;
Installation;
Maintaining an office;
Providing maintenance or engineering services.
2
Q
Define “nexus.”
A
The degree of the relationship that must exist between a state and a foreign corporation for the state to have the right to impose a tax.
3
Q
How is business income apportioned among the states in which it is earned?
A
Business income is apportioned among the states in which it is earned based on apportionment factors such as sales, property, and payroll.
4
Q
How is the apportionment sales factor calculated?
A
Total Sales in State divided by Total Sales.
