In a 1992 decision, Quill v. North Dakota, the U.S. Supreme Court ruled
that retailers are exempt from
collecting
sales taxes in states where they have
no
physical presence, such as a
store,
office, or warehouse.
(The
legal
term for this physical presence
is
"nexus.")
Although
the case dealt
with a catalog mail-order
company,
the ruling has subsequently been applied to
all
remote sellers, including
online retailers. The Court said that
requiring
these companies to comply with
the
varied sales tax rules and regulations of 45
states
and some 7,500 different
local taxing jurisdictions would
burden
interstate commerce.