State and local governments are not happy with the growth of E-commerce and the lack of corresponding sales and use tax receipts.
States view cyberspace as the black hole of sales tax revenues.
While no one wants to pay more tax than they have to, and avoid taxes if they legally can avoid paying them, nevertheless, each one of us has the obligation, both legally and ethically to pay sales and use taxes when due and payable. While state sales and use taxes are not quite so onerous, there is a tremendous political and social gain to have everyone pay their fair share of sales taxes. Sales taxes are not only paid by the citizens of a specific state or county but visitors to the area also pay sales taxes when they rent hotel and motel rooms, eat dinner at a restaurant, buy souvenirs, shop in our stores. Visitors do not get rebates or exclusions from paying sales taxes because they do not live in this area. Allowing someone, who has a computer and Internet access, to avoid paying sales taxes, on the same items that if purchased at the corner retail outlet would result in sales tax revenue, will force the states ultimately to react.