"Vic Smith" wrote in message
...
On Fri, 16 Nov 2007 14:54:07 GMT, "BillP"
wrote:
"Vic Smith" wrote in message
. ..
The key phrase "QVC is registered with your state to collect sales or
use
tax" this provides the "nexus".
QVC has volunteered to register with the state, probably due to either a
presence in the state or a subsidiary in the state.
Without this presence, or nexus in the state they can not be forced to
collect the sales tax.
I found this (I live in Illinois)
http://www.revenue.state.il.us/legal...0/sg000281.PDF
Which includes this:
"Some out-of-State retailers who do not have sufficient contact
(nexus) with this State choose to voluntarily register to collect
Illinois Use Tax so that their customers are relieved of the
responsibility of filing a return and remitting the tax directly to
the Department."
Indicating "nexus" isn't necessary.
I don't know why a company would "voluntarily register" without a
nexus since this is a pricing disadvantage.
But apparently they do.
--Vic
They nexus or presence is created when the company registers
*voluntarily*
with the state.
Reminds me of witch-detection. Toss her in the pond, and if she
drowns she wasn't a witch. If she floats, kill the witch.
According to what you've said, nexus only means "you're paying tax."
There are many reasons why a company will do this voluntarily,
subsidiaries
in the state, a company that they do a large amount of business with in
the
state, or a business relationship with the state ( get on the state's bid
list).
That's the problem. I can find no company connection to Illinois.
So the "nexus" (as defined by Illinois) is invisible to me.
Though I'm not opposed to paying taxes, it would be good to get
clarity on why QVC charges Illinois tax and other companies don't.
--Vic
Once a company registers with an outside state, they're basically conceding
to a nexus or presence in the state. The state itself could care less
whether they actually did or didn't have a nexus or presence before they
registered, only that they now remit sales tax. Call their tax dept,
they'll probably tell you why they registered with your state.