Getty Images Extortion Letter with Sales Tax

[Moe Hacken]

MrNiceGuy, you're right about the NEXUS rules. The rules can vary though:

Here are Here are some cases in which a business might have a sales tax nexus in a state:

• If the business has a physical location in the state
• If there are resident employees working in the state
• If the business has property (including intangible property) in the state
• If there are employees who regularly solicit business in the state.

Source: http://biztaxlaw.about.com/od/glossaryn/g/nexusdef.htm

I really don't know how it works in Texas, but in California they would care. For instance, San Diego made a mistake and overcharged tax for a period of time before they were slammed with a class action lawsuit for enacting a tax that had not actually been qualified by the required percentage of the voters.

Then they had to LOWER the state tax for a while to "make up" for the extra revenue. They actually tried asking if they could keep the money (ha!) for something else that was nice and noble, but Southern California voters are quite the penny-pinching demographic and of course, they said NO.

In spite of all this sales tax rollercoasting and what are among the highest sales tax rates in the nation, California is skating on the very edge of bankruptcy, as McFilms noted earlier. They have some really nice public golf courses, though!