There's a huge difference. In general, the idea is that we have to pay taxes to the state when we do business because the state facilitates it through creating an environment to make it possible. For a brick and mortar store, the state has made sure that the employees are getting paid a fair wage According to whom?, that there are utilities provided on site To benefit the business on the site - the business can pay for it's own mains connection and water and will, that the area is zoned properly For who's benefit and why?, that crime is low Is it? which allows people to travel to and from the business So there are roads to benefit the business, that we have to pay for, to benefit the business?, that there is recourse for theft on the part of either party WTF you talking about Willis? Get insurance, they have it, that claims made about products are true Are they now? and the Fed's patrol that water, your state sales tax has nothing to do with fairness in marketing, that the products are safe Are they now? Again, your state has nothing to do with that and your sales taxes don't pay for it and if someone gets injured there is recourse To whom? Your sales taxes have nothing to do with that. The lawyers and companies and insurers deal with it and those costs are embedded in product price before you even bought it, etc, etc. Etc, infinity. For online sales, all the state has to do is make sure the mail gets delivered.