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They have done so both because of the complexity of the various states tax codes and because whichever company would first require its customers to pay sales taxes would face a competitive disadvantage (eWeek, 2003).
Argument Against Internet Sales Taxes
Remote Sales and Taxation Issue
In the case of Quill Corp. v. North Dakota, the Supreme Court ruled that only states that have a substantial nexus could be made to remit and collect use taxes. A ?§substantial nexus?? has been defined as a physical presence and does not include companies whose only connection to the state is through phone, Internet, or mail...
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