Time for everyone to 'fess up. Who has ordered goods via the Internet and not paid your state sales tax? As suspected, most everyone is raising their hand.
Under current law, states can only collect sales taxes from retailers that have a physical presence in their state. While most states do require individuals to report their online purchases when they file their annual tax returns not everyone does.
Shopping online and avoiding sales taxes has indeed saved consumers a lot of money. But it has also created an uneven playing field for brick and mortar retailers versus Internet-based retailers.