I just look at is as closing a loop hole, you always owed the tax, people just never paid it
Obviously that's the correct viewpoint, but I still feel the local services aspect does mitigate paying sales taxes somewhat. And yes, even if they only have one distribution node in your state they end up using local services. But nowhere to the same degree that your local Best Buy, Microcenter, Home Depot, etc uses. It's apples and oranges.
Hell, I just got two packages today from Amazon - both from Kentucky. I don't
ever remember getting anything from Amazon from a VA warehouse. I'm not so sure it is fair VA is collecting sales tax for something that wasn't sold in VA. Now what I don't, absolutely not even a little, have a problem with? Charge me the sales tax of the state my item is located in. I got my bundle from Kentucky today? Fine. Kentucky is where the warehouse was, which is where local services are used for the commercial end of the transaction.
Why the hell should Virginia be getting their pound of flesh just because a package ends up on my doorstep in VA? I already pay real estate taxes, income taxes, etc. I paid my shipping to compensate the moving of said items from KY to VA. I don't see, when the item came from Kentucky, what enables VA to take 6% of the transaction via sales tax.
Here's an added bonus of charging sales tax from the state where the item resides originally - it would make states think twice about their taxation. I've read that Amazon's fulfillment centers in particular are insane generators of local jobs and income. It literally changes small towns entire economy if Amazon decides to open up shop. This way states would have to think twice about gouging on sales tax, lest online retailers simply avoid them like the plague.
VA, nor any other state, should be collecting sales tax if the item sold isn't originating from that state. Quite frankly, it's screwing over the state where the warehouse is, a commercial property which is draining local resources without being compensated via sales tax, while VA reaps what's rightfully KY's to claim.
At least for states with income tax/real estate tax. As far as I'm concerned, when an item ships from KY and I pay the USPS for shipping, VA real estate and income tax - VA has no further claim to even a dime of any online transactions. Just because Amazon has
some building on VA land?