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"If I were a retailer here in Tulsa, I would have to collect 8.5% sales tax on every transaction. I could compete against Amazon on service and other variables. But Amazon doesn't have to charge that 8.5% tax. That is just not right or fair. "

True, but by definition, the out of state retailer must ship the product to the consumer. Aside from the shipping costs, there's the time delay. Those factor into consumer decisions. If we're really concerned about absolute fairness, then maybe we should force in-state retailers to pay an additional tax on sales from inventory to offset the cost of shipping and the inability to deliver at the moment of the transaction to the out of state retailers.

I'm not suggesting that, only trying to point out that fairness can be interpreted broadly.

If fairness was really the goal, then the focus would be on collecting sales tax at the state from which the product ships, not the state to which the product is delivered. The delivery companies are already paying taxes to cover that part of the transaction. The destination state isn't paying anything for the costs of running the business in the source state. If taxes are to be collected, it should be where the business doing the shipping resides.

Of course, that wouldn't be "fair" to states with high sales taxes...

If fairness was really the goal, then the focus would be on collecting sales tax at the state from which the product ships, not the state to which the product is delivered.

Think about this for a moment. As a consumer, where I buy the product determines the cost. As a consumer in Tulsa, I cannot get the tax rate in a low tax state unless I go there to shop. Or move there.

True, but by definition, the out of state retailer must ship the product to the consumer. Aside from the shipping costs, there's the time delay. Those factor into consumer decisions. If we're really concerned about absolute fairness, then maybe we should force in-state retailers to pay an additional tax on sales from inventory to offset the cost of shipping and the inability to deliver at the moment of the transaction to the out of state retailers.

Exactly. Whenever I hear someone whining about the 'unfairness' of not taxing internet sales, they never seem to factor in shipping or time. ... and anyone who believes there is such a thing as "free shipping" is an absolute moron who shouldn't be allowed to breed.