Sales and use tax laws vary all over the place in the various states. I have to pay our astounding 9.25% sales tax (we have no income tax) on online purchases if the seller has a physical presence in Tennessee. So, if I buy a book from Barnes & Noble via the internet, I pay the sales tax because they have retail stores in the state. I can buy the same book from Amazon at a lower price with no sales tax and, sometimes, with no delivery charge. Guess where I buy books?
Now enter the politicians and bureaucrats. Amazon has announced it will build two distribution centers near Chattanooga and employ 1,500 people. The Tennessee Department of Revenue has announced that all sales by Amazon to Tennessee residents will be subject to the sales tax. I know who will win this fight. No one. Tennessee will not get the new jobs and Tennessee will not get the additional tax revenues. Everyone loses...that's only fair, right?