That's insane.
Lots of states are moving to gross receipts taxes. It allows them to force nexus on corporations by avoiding the protection that Public Law 86-272 provides because that law applies only to “income tax”.
Ohio was among the first to do this. They repealed their income tax and enacted the “CAT” - commercial activity tax. It’s a gross receipts tax.
The idea is that the rate is lower (versus income tax) but you greatly broaden the tax base by pulling in taxpayers that previously were exempted from the income tax thanks to PL 86-272.
The problem is, even if a taxpayer is losing money, i.e. if they have no profit, they are still liable for the tax because it’s based on gross revenue not income.