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Due Process Clause Case Study

Decent Essays

within the confines of the Due Process Clause, the Supreme Court said that the “simple but controlling question is whether the state has given anything for which it can ask in return.” Applying the same ideas, the Supreme Court stated that the power of a state to impose use tax collection-obligations and liability upon a remote seller could be proper in a variety of circumstances. However, the Court found that a state may not impose a duty of tax collection onto a seller whose only connection with customers in the State is by common carrier or the mail. Subsequently, the Supreme Court held that physical presence is the requirement for use taxation and the Illinois statute in question violated both the Due Process Clause and the Commerce …show more content…

While Illinois sales totaled just over $2 million, both of those figures are substantial when considering the date of the National Bellas Hess decision. The dissent notes that the corporation’s mailing list includes five million names, and the company even allowed sales on credit—a feature that exemplifies how sophisticated National Bellas Hess was in a time before the advancement of modern technology. There is no doubt that such a large-scale corporation that did continuous solicitation in the Illinois market had a sufficient nexus to require them to remit the use taxes back to the state. The company was never “simply using the facilities of interstate commerce to serve customers in Illinois,” but rather it was “regularly and continuously engaged in ‘exploitation of the consumer market.’” The company engaged in the benefits of the state as if it were a brick-and-mortar retail store, and to “excuse Bellas Hess from [its] obligation is to burden and penalize retailers located in Illinois who must collect the sales tax from their customers.” The activity the company directed into Illinois was not “minor or

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