Answer:
Determination of the state in which Mighty Manny does not have sales tax nexus:
A. No sales tax nexus in Minnesota, under given scenario.
B. No sales tax nexus in Wisconsin, under given scenario.
C. Sales tax nexus may exist because of the large orders. It may approach the sales threshold of more than $100,000 worth.
D. No sales tax nexus in Nebraska, with trucks driving through to other sales.
Explanation:
Might Manny is incorporated and headquartered in Michigan, according to this case. So, it has sales tax nexus in Michigan for its physical presence and sales.
Sales tax nexus describes the factors that can make a state to impose sales taxes on a business. The factors that establish sales tax nexus are a) certain business activities, b) physical presence, and c) approaching a certain sales threshold of either 200 transactions or $100,000.
Some states that have adopted the Wayfair legislation determine sales tax nexus with the above mentioned sales threshold of 200 transactions or $100,000. California's sales threshold is $500,000.
However, Public Law 86-272 or Interstate Income Act of 1959 forbids states from imposing unnecessary sales tax burdens on businesses soliciting for sales in their states without physical presence, provided the orders are filled or shipped from outside the said state. But, some of them rely on the Wayfair legislation, as it allows them some leverage to impose sales tax without physical presence of the business.
