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.
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Not necessarily. ZIP codes cross city boundaries and are not accurate for determining your own or your customer's city for tax purposes. The tax resources page provides ways to identify cities for tax.
The Tax Division can advise you by phone, email, or in person about completing your return. A tutorial is available on this website.