Consumers are used to paying sales taxes in their local stores. Within the past few years, many started paying taxes on items bought online as well.
The collection of sales tax on e-commerce purchases is referred to “economic nexus.” According to payment firm Stripe, the term economic nexus “refers to a business presence in a US state that makes an out-of-state seller liable to collect sales tax there once a set level of transactions or sales activity is met.”
Sales taxes are generally a state tax, though some counties and cities impose additional sales tax levies. Each state sets its own laws and rules around sales taxes.
