But the "local" gov't does not supply those services for the internet company. Why should they be paid for services they donot provide?
Sales tax is not a tax on business, it is a tax on people buying things from the business. Businesses in the state pay business taxes for the services provided.
Sales tax is for services provided to the people who LIVE in the state. How would you feel if you found out that your next-door neighbor didn’t have to pay government anything for all the services they get, while you have to pay extra taxes to cover both your and his services?