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Nexus is a connection between an entity and a state that is sufficient to subject the entity to the state’s authority to tax.  Accordingly, an entity with nexus is required to register for, file, and remit tax(es). Nexus with Michigan is created through physical presence and/or economic presence.

Physical presence can be created by employees, agents, brokers, representatives, subcontractors, etc. working on behalf of the entity within Michigan. Physical presence can also be created by the presence of property such as goods, offices, real estate, vehicles, etc. physically within Michigan. Nexus creating activities of employees and representatives can range from soliciting sales to performing services for any length of time.

Economic presence can be created when a company meets certain thresholds (gross receipts/gross sales) or other requirements.


Revenue Administrative Bulletins

RAB 2014-5, CIT Nexus Standards

RAB 2021-21, Sales and Use Tax Nexus Standards for Remote Sellers



Form 1353, Michigan Department of Treasury Nexus Questionnaire

Form 4133, Voluntary Disclosure Request