Or you could just eliminate sales taxes.
Why must the solution be tax increases?
Because sales taxes across the board are not going to be dropped in a state that has no income tax. There has to be some form of tax.
So, in order for tangible retail stores to have a fair playing ground, the taxes should be applied equally. Otherwise, the government is picking winners with tax policy (which I know happens in other ares, and I still dont like it).