Collecting Sales Tax: Some Do, Some Don't
The obligation to pay sales tax is determined by the location of the buyer, not the seller. If a business does not have a physical presence in a particular state, such as a store or warehouse, it is not required to collect sales tax sales from customers in that state. In legal speak, this connection between sales and location is referred to as a "nexus" and was established by the U.S. Supreme Court in Quill v. North Dakota, 504 U.S. 298 (1992).
Exceptions to the Rule
Many
big retailers with local stores can sell their products tax free
over the Internet because they have established separate legal
subsidiaries to handle Internet business. Put another way, the
Barnes & Noble you buy a book from online is a different company
from Barnes & Noble at the mall. Since the online Barnes & Noble
doesn't have a physical presence in your state, no sales tax is
charged for online purchases.