is incorporated or organized in the state;is headquartered or has a principal place ofbusiness in the state;owns or uses real or tangible personalproperty in the state; leases, licenses, or consigns real or tangiblepersonal property in the state;has a full or part-time employee in the state;owns or uses intangible property in the stateunder a contract, license, sublicense, or franchise;holds an interest in a partnership doingbusiness in the state, including interests in tiered partnerships; orhas in-state sales, including sales of unitarybusiness affiliates, from either economic or virtual contacts that exceed$500,000. By Tim Bjur, J.D. What Are the Nexus Rules? Theprotection under P.L. 86-272 does not apply to: A corporation is subject to Massachusetts taxjurisdiction if it: Login to read more on CCHAnswerConnect. Among other changes, the amended rules: Can Independent Contractors Create Nexus? its exclusive activity in the state is the solicitation of orders for the sale of tangible personal property;the orders are sent outside the state for approval or rejection; andthe orders are filled by shipment or delivery from a location outside the state. A corporation does not create corporate excisetax nexus in Massachusetts if it: Are There Exceptions to the Rules? P.L. 86-272 also prohibits Massachusetts fromimposing its excise tax on a corporation if: Visits to Massachusetts by employees or otherrepresentatives normally create nexus if: owns property stored in a licensed publicwarehouse in the state;owns property in transit through the statethat is in the possession and control of a common or contract carrier;owns stock in a corporation doing business inthe state;deposits funds or maintains securitiesbrokerage accounts with unrelated financial institutions in the state; orholds a limited interest in a publicly tradedpartnership doing business in the state. adopt an economic andvirtual contacts standard set forth by the U.S. Supreme Court in South Dakota v. Wayfair;clarify that therules apply to the nonincome measure of the corporate excise tax and theminimum tax;remove the laundry list of activities protected from excisetax jurisdiction by Public Law (P.L.) 86-272; andeliminate exceptionsfor de minimis activities. Massachusetts amended its rules on corporate excise tax nexus. The rulesexplain the standards Massachusetts follows when exercising tax jurisdictionover corporations doing businessin the state. A corporation can also create corporate excisetax nexus if it has an independent contractor or other representative inMassachusetts that: the visits are lengthy, continuous, regular,or systematic; orthe visits provide management, technical, orother business support to unitary business affiliates. sales of services or licenses of intangibles in the state;in-state activity that is not entirely ancillary to the solicitation of orders for tangible personal property; orthe non-income measure of the corporate excise tax or the minimum tax. delivers, installs, assembles, maintains, orrepairs the corporation’s products; ortakes orders or otherwise establishes ormaintains a market for the corporation’s products or services. Not a subscriber? Sign up for a free trial or contact us for a representative.