Asked by
Adriana Marie
on Nov 28, 2024
Verified
Online retailers that have a physical presence within a state must collect state taxes on any Web sales made to residents of that state. Sell2U.com Inc., an online retailer based in California, pays Tracker Web Services, which is located within New York, to direct traffic to Sell2U.com's site. If Sell2U.com must collect and remit taxes on its sales to New York residents, it is most likely because
A) Sell2U.com's deal with Tracker falls within New York's definition of physical presence.
B) Congress has explicitly chosen to tax Internet sales.
C) the United States Supreme Court has ruled that a state can compel an out-of-state business to collect and remit state taxes.
D) New York requires its residents to self-report their purchases and pay use taxes to the state.
Physical Presence
The actual, bodily existence of a person or entity in a specific location at a given time.
Internet Sales
Refers to the process of buying and selling goods or services using the internet as the main medium of commerce.
State Taxes
Taxes imposed by individual U.S. states on income, property, sales, or other activities within their jurisdiction.
- Identify the tax obligations of online businesses with physical presence or economic nexus in different states.
Verified Answer
ML
Learning Objectives
- Identify the tax obligations of online businesses with physical presence or economic nexus in different states.
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