There is hereby levied and assessed and shall be collected privilege taxes for

There is hereby levied and assessed and shall be

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'There is hereby levied and assessed and shall be collected, privilege taxes for the privilege of engaging or continuing in business or doing business within this state to be determined by the application of rates against gross proceeds of sales or gross income or values, as the case may be, as provided in the following sections.' Miss. Code Ann., 1942, s 10105. The Supreme Court of Mississippi viewed that statute as applying to both intrastate commerce and interstate commerce. The statute and the Court’s view makes a Mississippi tax on the privilege of doing business within the State not to violate the Commerce Clause when it is applied to an interstate activity with a substantial nexus with the taxing State. (d) Conclusions of the court The Court concluded: Taxpayer has a large operation in this State. It is dependent upon the State for police protection and other State services the same as other citizens. It should pay its fair share of taxes so long, but only so long, as the tax does not discriminate against interstate commerce, and there is no danger of interstate commerce being smothered by cumulative taxes of several states. Quill Corp. (a) Facts
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Quill Corporation was an out of state mail order house with neither outlets nor sales representatives in North Dakota. However, North Dakota filed an action in state court to require Quill Corporation to collect and pay a use tax on goods purchased for use in the State. (b) Issues presented Did Quill have Nexus with North Dakota in order for the state to impose tax on it? (c) Analysis of issues Due Process Clause nexus is defined as a minimum connection with the State, and Commerce Clause nexus is defined as a “substantial” connection with the State. In this case, Quill has purposefully directed its activities at North Dakota residents. The magnitudes of those contacts are more than sufficient for due process purposes, and the tax is related to the benefits Quill receives from access to the State. Due process concerns the fundamental fairness of governmental activity, and the principal concern of the Commerce Clause is the effect of state regulation on the national economy and the potential for unduly burdening interstate commerce. So a mail order house may have the "minimum contacts" with a taxing State as required by the Due Process Clause, and yet lack the "substantial nexus" with the State required by the Commerce Clause. (d) Conclusions of the court. The conclusion held by Supreme Court is an out-of-state mail-order business with no physical presence in the state could not be required to collect that state's use taxes.
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