Spiegel,Inc.,has a catalog merchandise return facility in Nevada.Spiegel employs many phone operators for processing return requests,and merchandise is returned to the facility and stored there for later dispatch.The state of Nevada has proposed taxing Spiegel's full inventory based on the theory that it could have passed through the Nevada facility.Spiegel's main warehouse is in Chicago,Illinois.Nevada:

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Nevada does not have the authority to tax Spiegel's full inventory because the Commerce Clause of the U.S. Constitution prohibits states from placing an undue burden on interstate commerce. Taxing Spiegel's entire inventory based on the theory that it could have passed through their Nevada facility would be an unreasonable burden on interstate commerce. The proper method for taxation would involve apportioning the tax only to the portion of inventory that was actually stored in Nevada.