- All gross sales count toward the threshold, both taxable and nontaxable sales, not just taxable sales
- A marketplace seller's gross sales include all Wisconsin sales made on the business's own behalf plus all sales made on the business's behalf by a marketplace provider
- The small seller exception applies only to remote sellers with no physical presence in Wisconsin; businesses with any physical nexus trigger are outside the exception regardless of sales volume
- When a remote seller is below the $100,000 threshold, use tax responsibility shifts to the Wisconsin purchaser
Affiliate nexus
Wisconsin's affiliate nexus standard is embedded within the physical nexus statute at Wis. Stat. § 77.51(13g)(e) rather than in a standalone affiliate nexus provision. An out-of-state seller has nexus in Wisconsin when it has a related affiliate in Wisconsin and that affiliate uses Wisconsin facilities or employees to advertise, promote, or facilitate the seller's Wisconsin market, or to provide services to the seller's Wisconsin customers.
Wisconsin does not have a standalone click-through nexus law. A simple online referral link, where the affiliate does not use Wisconsin facilities or employees to carry out any qualifying activity, does not independently trigger nexus for the out-of-state seller.
Physical nexus
Under Wis. Stat. § 77.51(13g), a broad set of activities independently create physical nexus in Wisconsin. Owning real property in the state creates nexus, as does leasing tangible personal property located in Wisconsin. Maintaining an office, warehouse, distribution place, sample room, or any other place of business in Wisconsin, whether directly or through a subsidiary or agent, also establishes nexus.
Having representatives, agents, salespersons, or canvassers operating in Wisconsin triggers nexus, as does making deliveries into Wisconsin using company vehicles. Performing construction, service, repair, or installation activities in the state creates nexus independently of any other factor.
Inventory storage is treated as a physical presence trigger: a seller storing goods in a third-party Wisconsin warehouse, including through Fulfillment by Amazon, is not considered a remote seller, and the $100,000 economic nexus exception is therefore unavailable to that seller. Employees in Wisconsin, including those not involved in sales functions, also create physical nexus.
Exhibiting at a Wisconsin trade show without actually soliciting or taking orders at the event does not trigger physical nexus. Receiving mail or phone orders from outside Wisconsin and advertising in Wisconsin media alone similarly do not create nexus.
Trailing nexus
Wisconsin has no codified trailing nexus statute for physical presence, and no formal rule specifies how long a collection obligation persists after physical nexus is eliminated.
For economic nexus, the prior-year lookback under Wis. Stat. § 77.51(13g) produces an equivalent effect: exceeding $100,000 in gross sales in the prior calendar year triggers a collection obligation for the entire following calendar year, even if current-year sales fall below the threshold. 2021 Wisconsin Act 1 established the calendar year as the operative measurement period for this lookback when it repealed the 200-transaction prong effective February 20, 2021.
