Final answer:
The definition of nexus for sales and use taxes was established through Quill Corp. v. North Dakota, South Dakota v. Wayfair, Inc., and National Bellas Hess, Inc. v. Department of Revenue of Illinois, making the correct answer 'All of the above'. South Dakota v. Wayfair, Inc. overturned the requirement that businesses must have a physical presence in a state to collect sales taxes, a significant shift in sales tax law.
Step-by-step explanation:
Nexus for Sales and Use Taxes
The concept of 'nexus' for sales and use taxes has been defined and refined through a series of landmark court cases. The nexus is essentially a legal threshold for determining when an out-of-state business must collect and remit sales tax for sales made within a state. The correct answer to which court case helps establish the definition of nexus for sales and use taxes is 4) All of the above.
Quill Corp. v. North Dakota (1992) affirmed that a business must have a physical presence in a state for the state to require it to collect sales taxes. South Dakota v. Wayfair, Inc. (2018) overturned this physical presence rule, establishing that states can require out-of-state sellers to collect and remit sales tax based on economic and virtual contacts (economic nexus) with the state. National Bellas Hess, Inc. v. Department of Revenue of Illinois (1967) set the precedent that was later overturned by Quill, which then was effectively superseded by Wayfair.
An understanding of these cases is critical in the context of state sales taxes and intergovernmental revenues. In addition, companies such as Amazon.com might support measures like the Marketplace Fairness Act of 2013 because it levels the playing field for both physical and online retailers concerning sales tax collection obligations.