It's simple.

First, you are not facing a SALES tax: it's a SALES and USE tax.

If the vendor has a physical presence in your state, he collects the tax
and
remits the money to the state comptroller.

If the vendor does NOT have a presence in your state, YOU are responsible
for sending the appropriate tax amount to your state treasury.



Realistically, very few people pay the USE tax. I'm in Tennessee, 9.5% sales
tax and my competition is the Internet with effectively zero percent sales
tax or Kentucky with 6%. If I don't discount enough to come in below those
prices, I lose the sale.

Bob