When using the Nexus tab, you may notice that the number of states shown in there doesn’t always match the actual number of U.S. states. This discrepancy is due to the way Kintsugi determines which states to include. Here’s a breakdown of why this happens:

1. States Without Sales Tax Are Excluded

The Nexus tab only includes states where a business has sales tax obligations. States that do not impose a sales tax are not shown in the list. This means that if your business does not have sales tax requirements in a particular state, that state won’t appear in the list.

2. Only States with Sales Tax Responsibilities Are Listed

Kintsugi focuses on the states where your business has sales tax responsibilities. If your business does not have a taxable presence in a state, that state will not be listed.

3. Washington D.C. and Puerto Rico Are Included

Although Washington D.C. and Puerto Rico are not U.S. states, they are included in the Nexus tab because they have sales tax requirements. Both Washington D.C. and Puerto Rico impose sales tax, so they are included in the list even though they are not officially classified as states.