Idaho has had this for a long time. It was put in place to account for mail order catalog sales. Basically, it is a use tax, not a sales tax as for it to be sales tax, the sale has to be in Idaho.
Use tax applies on things that would be normally taxed under the sales tax rules but the sale didn't take place in Idaho. If a company has a physical presence in the state, they will charge you sales tax on your purchase over the net anyway, as they are required to by current law.
Most states have a use tax to go along with the sales tax to cover sales to you not made in the state.
As an aside, for all of those saying consumption tax is the most fair, then to consume and not pay the tax, it is a bit hypocritical. Don't get me wrong, I'm not for more taxes. It is just an observation.
True, but is should be up to the reseller to collect and report sales tax, not the consumer. Can you imagine if Sears sold you something and didn't collect tax, and you were expected to retain proff and mail in the tax at year end? Who would the State go after Sears or you? So why on the internet are they going after the individual?
I understand the concept of the "use tax". However, how would they enforce this? Are they now allowed access to all of our personal financial information?