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Too much water (which results in flooding) or too little water (which results from drought or overuse) can have a significant impact on electricity production. Similarly, certain forms of energy production require massive amounts of water. That water is often returned to water ways contaminated with pathogens from livestock, pesticides, nitrates in groundwater, trace metallic elements and emerging pollutants, including antibiotics and antibiotic-resistant genes excreted by livestock. This is the case in California – in the country’s most prolific agricultural region, agriculture accounts for 80 percent of all human water use in the state. Because food is often grown in more arid climates where water can be scarce, water is often taken out of other watersheds and transported long distances for irrigation. It takes water – a lot of it – to grow and produce food. Corporations use water footprints to understand how their processes use water and energy and where they can reduce both, thereby saving raw materials and money. Water footprints take an innovative approach to the Water-Energy-Food Nexus, because they help people understand those connections through the lens of their own water use. Consider how and where all three are used in the US – as events like droughts, oil spills and fluctuating food prices make clear, the US cannot view these systems in isolation. The connection between the systems is known as the Water-Energy-Food Nexus. Food and energy are equally dependent upon each other. It takes water to grow crops and produce energy and it takes a lot of energy to treat and move water. If you’re uncertain about the impact of your business activities on your corporate compliance, reach out.Food, water and energy systems are intimately connected with each other and water is a crucial component to making food and energy systems work. However, the threshold in many other states is $100,000 in sales or 200 transactions over a 12-month period. California’s threshold for economic nexus is $500,000. We have noted that nexus requirements vary from state-to-state – and California’s sales thresholds are relatively high. It’s not advisable to use the California nexus requirements as a baseline for other states. Sending a travelling salesperson to a state.Ī Note About Nexus for Corporations in California.Developing online referral relationships in exchange for commission.Sending a consultant or advisor to provide services.Developing supplier relationships with resellers.Taking on a major client, or a number of smaller clients, in one state.Selling products online, through a retailer, or via your own storefront.Again, we suggest you consult local counsel to ascertain whether your business activities may result in a nexus being established.
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It is intended to be general and is not complete. We have created a list of events or milestones that may result in your business being deemed to be ‘doing business’ in another state. Triggering Events Establishing Nexus in Other Statesīecause the nexus requirements vary from state-to-state, we can’t comprehensively cover all the events that establish nexus in other states. Affiliate programs, where independent businesses sell through other businesses (like Amazon, Etsy, and the like).Click-through relationships that direct web traffic.Sales in excess of the state threshold for establishing a tax nexus.A physical presence, including an office or storefront.If you need specific details about a certain state, we suggest you consult with local counsel.ĭepending on the state, the following may establish nexus: The exact requirements vary from jurisdiction to jurisdiction, so we are speaking broadly here. Generally speaking, a corporation has a nexus with another state when it conducts certain actions within that state. In this article, we’ll provide a basic overview of nexus for corporations. Since then, we have heard quite a few questions about the importance of ‘nexus’. Earlier this year, we published an article outlining 5 things businesses should consider before incorporating in Delaware.