The Ohio budget legislation, HB 49, that Gov. John Kasich signed into law last July contained an expanded statutory definition of “substantial nexus,” which governs the taxability of sales made by vendors that are located outside of the state. Quoting the legislation at the time, we explained that substantial nexus is presumed to exist when the seller has “gross receipts in excess of $500,000 in the current or preceding calendar year,” and the seller does at least one of the following:
- Uses in-state software to sell or lease tangible personal property or services to consumers.
- Provides or enters into an agreement with another to provide a content distribution network in Ohio to facilitate delivery of the retailer’s website to consumers,