National Bellas Hess v. Department of Revenue

National Bellas Hess v. Department of Revenue (1967) was a U.S. Supreme Court case that addressed whether states could require remote sellers to collect sales tax on purchases made by customers in their state. The Court ruled that the Illinois Department of Revenue could not impose such a tax on National Bellas Hess, a mail-order company, because the company lacked a physical presence in Illinois. This decision reinforced the principle that states cannot tax businesses that do not have a direct, physical connection to the state, impacting how online sales taxes have been approached in subsequent years.