When the term ‘nexus’ is used in conjunction with sales tax, it refers to the connection a taxpayer has with some taxing jurisdiction. In most cases, this connection or nexus is created when the taxpayer has employees or independent contractors working in the taxing state, when the taxpayer owns personal or real property in the taxing state, or when the taxpayer performs services in the taxing state. Having nexus in the taxing state does not automatically mean that the taxpayer has some sort of tax filing or tax collection obligation. It simply means that the state taxing authorities can legally obtain information from the business to help the state taxing authorities determine if there is some tax collection obligation. In order for a taxpayer to have a sales tax collection and remittance obligation, it must have both nexus and some taxable activity in the taxing state. Most state statutes do not use the term ‘nexus’ when describing this sort of connection with the state. Rather, they user terms like ‘doing business’ or ‘dealer’, or ‘conducting business’ to describe the types of activities that give the taxing state the right to request information from the business.