Factor Presence Nexus Standard for Business Activity Taxes

Adopted in 2002, this model provides a simple bright-line nexus test for business activity taxes including corporate income tax. A business will have nexus if it exceeds any of the following apportionment factor numerator thresholds in that state during a tax period:

• $50,000 of property;
• $50,000 of payroll;
• $500,000 of sales; or
• 25% of total property, total payroll, or total sales.