In general, for City sales and use tax purposes, physical nexus means a business has a physical location in the City. If a business has physical nexus, it must obtain a business license and collect and remit applicable City taxes. Even if the business has a State business license. Economic nexus means the business does not have a physical location in the City but does business in the City through deliveries and occasional or incidental business transactions but not in a permanent business location. The business must obtain a business license and collect and remit applicable City taxes but it is not required to pay a fee for the business license. The business must be able to demonstrate that it has a State business license. For more information on this definition, please refer to Senate Bill 22-032. See the licensing page for more details.