State and Local Sales and Use Taxes and Internet Commerce

In theory, state sales and use taxes are consumption taxes based on the destination principle. The destination principle prescribes that taxes should be paid where the consumption takes place. Sales taxes collected at the point of sale achieve this if consumption takes place near the point of transaction. Thus, to remain consistent with the destination principle, consumers pay a use tax on products purchased out-of-state and used in their home state where consumption likely takes place