Economic Nexus Threshold Analysis

Executive summary

1,772 taxable-sales documents (invoices + cash sales) shipped to 15 states in the last 24 months were evaluated. All figures exclude 69 future-dated documents ($98.9K) that exist in the account (see flags).

Key findings

Nexus status map

Tile-grid map of the 50 states + DC. Hover a tile for the state's test, our figure, and status. Colour = status against the state's own measurement window.

Threshold dashboard — states with activity or registration

"Our figure" is measured over the state's own lookback window (e.g. NY = preceding four sales-tax quarters Sep 2025–Aug 2026; CT = 12 months ending Sep 30; IL/TX = preceding 12 months; most others = previous or current calendar year, whichever is higher). Sales = document total less tax, ex-future-dated. Sparkline = monthly sales Sep 2025 → Sep 2026 (partial).

Both-conditions states (NY, CT) show the binding ratio (the lower of sales % and transactions %). Either/or states show the higher. Physical-presence states owe registration regardless of the economic test; their % is informational.

Runway to threshold

For states within reach: headroom remaining in the operative window, the trailing-3-month run-rate (Jun–Aug 2026, full months), and the implied crossing month. Run-rate projections are indicative — several of these states are single-customer.

Registration footprint vs. sales footprint

What NetSuite says we are registered for (nexus → subsidiarytaxregistration), overlaid with physical presence signals and 24-month sales.

Data-quality & compliance flags

Recommended actions

1. Fix INV762 / INV763 today. Add the ship-to address, let the tax engine recompute, and issue a corrected invoice or a tax-only invoice if the goods went to a registered state. AR · this week
2. Reconcile the 66 untaxed Illinois documents. Pull the list (query Q6), classify as (a) exempt customer with certificate, (b) resale, or (c) error. For (c), assess IL tax on the $10.8K and correct the cash-sale form's default tax code. Tax · 2 weeks
3. Record tax registration numbers on each subsidiarytaxregistration row (Setup → Company → Subsidiaries → Tax Registrations). Add a quarterly control that no active nexus has a blank number. Tax · 2 weeks
4. Colorado watch. Confirm destination local rates are applied on Red Rivers Consulting orders; expect the $100K test to be met on the next order and confirm the filing frequency the CO DOR assigns. Tax · on next CO order
5. Confirm or retire the five dormant registrations (NJ, NC, MO, MN, AK). Document the basis for each (trailing nexus, inventory, trade shows). Where none exists, file final returns and close the accounts — AK in particular (ARSSTC local-only regime) is pure overhead with $0 sales. Keep PA (resident employee). Tax + Controller · this quarter
6. Resolve the FBA question. If location 15 "FBA" holds inventory at Amazon, obtain the Inventory Event Detail report and map fulfilment-centre states — inventory creates physical nexus irrespective of sales thresholds. Ops · this quarter
7. Decide the entity basis for threshold testing. Thresholds apply per taxpayer; this report tests consolidated. Confirm with counsel whether Subsidiary 1 and Subsidiary 2 are separate registrants and, if so, adopt per-subsidiary monitoring (query Q7 already groups by subsidiary). Controller · this quarter
8. Institutionalise the monitor. Run the query in Ongoing monitoring on the first business day of each quarter (IL, MO, MN and TX are explicitly quarterly-review states) and refresh the threshold table against the Sales Tax Institute chart. Tax · quarterly
9. Clean future-dated documents (F5) or confirm they are intentional (e.g., pre-billing). They distort every rolling metric in the account, not just this one. AR · this month

Methodology & assumptions

Appendix A — Queries used

All SuiteQL, run live against the production account on 2026-09-04. House style applied (tl.subsidiary for subsidiary; single-currency, no currency columns).

SELECT
    t.id,
    t.type,
    TO_CHAR(t.trandate, 'YYYY-MM-DD') AS trandate,
    tsa.state,
    tsa.country,
    tsa.zip,
    t.foreigntotal,
    t.taxtotal,
    t.nexus,
    tl.subsidiary,
    t.entity
FROM transaction t
JOIN transactionline tl               ON tl.transaction = t.id AND tl.mainline = 'T'
LEFT JOIN transactionshippingaddress tsa ON tsa.nkey = t.shippingaddress
WHERE t.type IN ('CustInvc', 'CashSale')
  AND t.trandate >= TO_DATE('2024-09-01', 'YYYY-MM-DD')

SELECT
    t.type,
    TO_CHAR(t.trandate, 'YYYY') AS yr,
    COUNT(*)                                                     AS txns,
    SUM(CASE WHEN tsa.state IS NOT NULL THEN 1 ELSE 0 END)       AS with_state,
    SUM(CASE WHEN tsa.country IS NOT NULL AND tsa.country <> 'US' THEN 1 ELSE 0 END) AS non_us,
    ROUND(SUM(t.foreigntotal), 2)                                AS total
FROM transaction t
LEFT JOIN transactionshippingaddress tsa ON tsa.nkey = t.shippingaddress
WHERE t.type IN ('CustInvc', 'CashSale')
GROUP BY t.type, TO_CHAR(t.trandate, 'YYYY')
ORDER BY t.type, TO_CHAR(t.trandate, 'YYYY')

SELECT n.id, n.description, n.country, n.state, n.taxagency, BUILTIN.DF(n.state) AS state_name
FROM nexus n
ORDER BY n.id;

SELECT str.subsidiary, str.nexus, n.state, str.istaxexempt, str.taxregistrationnumber,
       str.taxengine, str.effectivefrom, str.validuntil
FROM subsidiarytaxregistration str
JOIN nexus n ON n.id = str.nexus
ORDER BY str.subsidiary, n.state

SELECT l.id, l.name, l.subsidiary, la.state, la.city
FROM location l
LEFT JOIN locationmainaddress la ON la.nkey = l.mainaddress
ORDER BY l.id;

SELECT ea.state, COUNT(DISTINCT e.id) AS employees
FROM employee e
JOIN employeeaddressbook eab                ON eab.entity = e.id
JOIN employeeaddressbookentityaddress ea    ON ea.nkey = eab.addressbookaddress
WHERE e.isinactive = 'F'
GROUP BY ea.state
ORDER BY COUNT(DISTINCT e.id) DESC

SELECT t.id, t.tranid, t.type, TO_CHAR(t.trandate, 'YYYY-MM-DD') AS trandate,
       t.foreigntotal, t.taxtotal, t.nexus, tsa.state, tsa.city, tsa.zip,
       BUILTIN.DF(t.entity) AS customer, ba.state AS bill_state
FROM transaction t
LEFT JOIN transactionshippingaddress tsa ON tsa.nkey = t.shippingaddress
LEFT JOIN transactionbillingaddress  ba  ON ba.nkey  = t.billingaddress
WHERE t.type IN ('CustInvc', 'CashSale')
  AND t.trandate >= TO_DATE('2024-09-01', 'YYYY-MM-DD')
  AND (tsa.state IS NULL OR tsa.state IN ('VA', 'ND', 'NM'))
ORDER BY t.trandate

SELECT tsa.state, t.tranid, t.type, TO_CHAR(t.trandate, 'YYYY-MM-DD') AS trandate,
       BUILTIN.DF(t.entity) AS customer, t.foreigntotal, t.taxtotal, tl.location
FROM transaction t
JOIN transactionline tl               ON tl.transaction = t.id AND tl.mainline = 'T'
JOIN transactionshippingaddress tsa   ON tsa.nkey = t.shippingaddress
WHERE t.type IN ('CustInvc', 'CashSale')
  AND t.trandate BETWEEN TO_DATE('2025-09-05', 'YYYY-MM-DD') AND TRUNC(SYSDATE)
  AND t.taxtotal = 0
  AND tsa.state IN ('IL', 'CA', 'NY', 'MA', 'KY', 'IN', 'CO', 'MI', 'TX', 'FL', 'OH', 'CT')
ORDER BY tsa.state, t.trandate

SELECT tsa.state, tl.subsidiary, BUILTIN.DF(t.entity) AS customer,
       COUNT(*) AS txns,
       ROUND(SUM(t.foreigntotal - t.taxtotal), 2) AS sales
FROM transaction t
JOIN transactionline tl               ON tl.transaction = t.id AND tl.mainline = 'T'
JOIN transactionshippingaddress tsa   ON tsa.nkey = t.shippingaddress
WHERE t.type IN ('CustInvc', 'CashSale')
  AND t.trandate BETWEEN TO_DATE('2025-09-05', 'YYYY-MM-DD') AND TRUNC(SYSDATE)
  AND tsa.state IN ('CO', 'IL', 'IN', 'NY', 'KY', 'MI', 'MA')
GROUP BY tsa.state, tl.subsidiary, BUILTIN.DF(t.entity)
ORDER BY tsa.state, SUM(t.foreigntotal - t.taxtotal) DESC

SELECT COUNT(*) AS future_txns, ROUND(SUM(t.foreigntotal - t.taxtotal), 2) AS future_sales,
       MAX(TO_CHAR(t.trandate, 'YYYY-MM-DD')) AS latest
FROM transaction t
WHERE t.type IN ('CustInvc', 'CashSale') AND t.trandate > TRUNC(SYSDATE);

SELECT t.type, tsa.state, COUNT(*) AS txns, ROUND(SUM(t.foreigntotal), 2) AS total
FROM transaction t
LEFT JOIN transactionshippingaddress tsa ON tsa.nkey = t.shippingaddress
WHERE t.type IN ('CustCred', 'CashRfnd', 'RtnAuth')
  AND t.trandate >= TO_DATE('2025-01-01', 'YYYY-MM-DD')
GROUP BY t.type, tsa.state
ORDER BY t.type, tsa.state

Appendix B — 50-state economic nexus reference

Transcribed from the Sales Tax Institute "Economic Nexus State by State Chart", as of 8/1/2026, with our status appended. "PC" = previous or current calendar year; "P" = previous calendar year; "T12" = preceding 12 months. Puerto Rico ($100K or 200, seller's fiscal year) omitted — no PR activity.

Appendix C — Ongoing monitoring query

Save this in the SuiteQL Query Tool and run it quarterly. It produces the per-state figures for every window used above in one pass, relative to the run date, and includes a per-subsidiary variant via the commented line. Compare the output to the reference table (or paste both into Sonar and ask for the delta).

-- Economic nexus monitor: one row per ship-to state (and optionally subsidiary)
-- Windows are relative to SYSDATE; future-dated documents excluded.
SELECT
    tsa.state,
    -- tl.subsidiary,                                        -- uncomment for per-entity testing
    ROUND(SUM(CASE WHEN t.trandate >= TRUNC(SYSDATE, 'YYYY')
                   THEN t.foreigntotal - t.taxtotal END), 2)                       AS cy_current_sales,
    SUM(CASE WHEN t.trandate >= TRUNC(SYSDATE, 'YYYY') THEN 1 END)                 AS cy_current_docs,
    ROUND(SUM(CASE WHEN t.trandate >= ADD_MONTHS(TRUNC(SYSDATE, 'YYYY'), -12)
                    AND t.trandate <  TRUNC(SYSDATE, 'YYYY')
                   THEN t.foreigntotal - t.taxtotal END), 2)                       AS cy_previous_sales,
    SUM(CASE WHEN t.trandate >= ADD_MONTHS(TRUNC(SYSDATE, 'YYYY'), -12)
              AND t.trandate <  TRUNC(SYSDATE, 'YYYY') THEN 1 END)                AS cy_previous_docs,
    ROUND(SUM(CASE WHEN t.trandate > ADD_MONTHS(TRUNC(SYSDATE), -12)
                   THEN t.foreigntotal - t.taxtotal END), 2)                       AS t12_sales,
    SUM(CASE WHEN t.trandate > ADD_MONTHS(TRUNC(SYSDATE), -12) THEN 1 END)         AS t12_docs,
    ROUND(SUM(CASE WHEN t.trandate >= ADD_MONTHS(TRUNC(SYSDATE, 'Q'), -12)
                    AND t.trandate <  TRUNC(SYSDATE, 'Q')
                   THEN t.foreigntotal - t.taxtotal END), 2)                       AS last4q_sales,   -- MN / VT style
    SUM(CASE WHEN t.trandate > ADD_MONTHS(TRUNC(SYSDATE), -12)
              AND t.taxtotal = 0 THEN 1 END)                                       AS t12_zero_tax_docs,
    ROUND(SUM(CASE WHEN t.trandate > ADD_MONTHS(TRUNC(SYSDATE), -12)
                   THEN t.taxtotal END), 2)                                        AS t12_tax_collected,
    COUNT(DISTINCT CASE WHEN t.trandate > ADD_MONTHS(TRUNC(SYSDATE), -12)
                        THEN t.entity END)                                          AS t12_customers
FROM transaction t
JOIN transactionline tl                  ON tl.transaction = t.id AND tl.mainline = 'T'
LEFT JOIN transactionshippingaddress tsa ON tsa.nkey = t.shippingaddress
WHERE t.type IN ('CustInvc', 'CashSale')
  AND t.trandate >= ADD_MONTHS(TRUNC(SYSDATE, 'YYYY'), -12)
  AND t.trandate <= TRUNC(SYSDATE)
  AND tl.subsidiary <> 4
GROUP BY tsa.state -- , tl.subsidiary
ORDER BY SUM(CASE WHEN t.trandate > ADD_MONTHS(TRUNC(SYSDATE), -12)
                  THEN t.foreigntotal - t.taxtotal END) DESC NULLS LAST

Appendix D — Source documents

• NetSuite production account TD3016323 — tables transaction, transactionline, transactionshippingaddress, transactionbillingaddress, nexus, subsidiarytaxregistration, location, locationmainaddress, employee, employeeaddressbook, employeeaddressbookentityaddress; queried 2026-09-04 (Q1–Q8 above).
• Sales Tax Institute, Economic Nexus State by State Chart, "As of 8/1/2026" — salestaxinstitute.com/resources/economic-nexus-state-guide (fetched 2026-09-04). Governs Appendix B and every threshold cited.
• Account field notes (Sonar, file 91360) — subsidiary structure, location id/name disambiguation, SuiteQL quirks (transaction.subsidiary not exposed; foreign* amount columns).