- Retail sales of tangible personal property delivered to Connecticut
- Retail sales of taxable services delivered to Connecticut (included since July 1, 2019)
- Sales made through a marketplace facilitator count toward the business's gross receipts and transaction totals
- Sales through an unaffiliated third-party fulfillment service in Connecticut
- Trade show attendance for 14 or fewer days per year with no on-site sales
- A Connecticut printer producing and distributing catalogs or materials
Affiliate nexus
Connecticut recognizes two forms of affiliate nexus under Conn. Gen. Stat. § 12-407(a)(12), each triggering a sales tax collection obligation through a distinct relationship-based rule.
The first is common ownership nexus. A remote seller is considered to have nexus in Connecticut when it is owned or controlled by a retailer already doing business in Connecticut in the same or similar line of business. No specific ownership percentage threshold is codified; the statute focuses on the control and operational relationship between the two entities.
The second is click-through nexus. A remote seller is presumed to have nexus when it enters into a commission-based agreement with a Connecticut-based person who refers customers to the seller, and gross receipts from those referrals exceed $100,000 in the prior four quarterly periods. The four quarterly periods end on the last day of March, June, September, and December. The presumption can be rebutted by demonstrating that the Connecticut-based referrer did not engage in constitutionally sufficient nexus-creating activities on the remote seller's behalf.
Physical nexus
Connecticut's physical nexus standard is broadly defined under Conn. Gen. Stat. § 12-407 and applies whether the business presence is permanent or temporary, direct or through a subsidiary or agent.
Nexus is established by maintaining in Connecticut any office, place of distribution, sales or sample room, warehouse, storage point, or any other place of business. Having representatives, agents, salespeople, canvassers, or solicitors who sell, deliver, install, or take orders in Connecticut also constitutes physical nexus. Providing taxable services within Connecticut is itself a nexus-creating activity independent of any property or personnel present in the state.
Inventory stored in an affiliated Connecticut fulfillment center creates nexus under the affiliate nexus rules. Inventory stored in an unaffiliated third-party fulfillment center in Connecticut does not create nexus and is a statutory safe harbor.
Trailing nexus
Connecticut has no statute, regulation, or Department of Revenue Services guidance addressing trailing nexus explicitly. Because Connecticut's economic nexus uses a look-back period ending September 30 of each year, a business that falls below both the $100,000 sales threshold and the 200-transaction threshold as of that September 30 date would not meet the conditions for nexus in the immediately following filing period. This outcome follows from the structure of the evaluation period rather than from any express trailing nexus rule.
