National Bellas Hess

National Bellas Hess was a 1967 legal case that addressed whether out-of-state businesses needed to collect sales tax from customers. The Supreme Court ruled that a company without a physical presence in a state cannot be required to collect that state's sales tax—a principle known as "physical presence" jurisdiction. This decision limited states' ability to directly tax online or mail-order sales from businesses outside their borders. The case was significant in shaping the legal landscape of sales tax collection for remote sellers until newer laws and rulings altered this framework.