In-State Delivery and Installation Created Nexus in North Carolina

A North Carolina tax hearing found that a taxpayer who made sales to North Carolina residents had nexus in the state and was subject to tax. The taxpayer was not previously registered in North Carolina, but made sales that included installation and delivery with their own trucks to customers in North Carolina. The taxpayer claimed that they were not responsible for the tax because they were registered in another state. However, the tax hearing found the taxpayer’s activities in the state qualified them as a retailer in North Carolina, they were responsible for tax on the sales. (Secretary of Revenue Decision No. 2006-177, North Carolina Department of Revenue, January 16, 2007)

Posted on April 20, 2007