There are many differences between local and interstate sales that may justify different tax treatment. For instance, a product purchased online requires less local services than a product purchased in a store. The Report also considered applying different rules to transactions involving tangible products as compared to digital products. It could also be confusing to consumers. That point of view is the burden place by transactions on state and local resources.
Tangible goods sold locally require a store and all that goes with it.
Tangible goods sold in interstate commerce require a shipping infrastructure. Digital products, on the other hand, require only a telephone line. Also, I doubt that consumer confusion would be much of an issue if digital products were taxed at a rate different from physical products. It is likely that consumers will accept whatever rate is imposed upon a transaction. Another alternative, apparently rejected by the Project, is the sourcing of transactions based on the seller s state rather than the buyer s state.