http://www.streamlinedsalestax.org/ http://www.streamlinedsalestax.org/ is an effort by (some) states to address the "burdensome" issue by simplification of the

http://www.streamlinedsalestax.org/ http://www.streamlinedsalestax.org/ is an effort by (some) states to address the "burdensome" issue by simplification of the tax code, maintaining a database of locations, and setting up a system of "Certified Service Providers" (i.e. middlemen to handle all the absurd requirements of calculation and reporting and insulate you from the flood of audits that would stem from being subject to so many jurisdictions.) They are even trying to convince residents of their member states to collect tax for all the rest. (I wonder how many there are?) But they don't really have enough states on board for their system to work, and haven't made much progress recently. They've filed an amicus brief for South Dakota. Their efforts are better than nothing, but in my opinion as an internet retailer still fall well short of "not burdensome". Any system that requires a whole new industry as a shim layer is pretty much broken. Even though as an internet retailer I mostly benefit from the lack of interstate sales tax I'm sympathetic to the "level playing field" argument. Frankly, I think it's stupid that local customers are at a disadvantage when buying from me. But a sane system would look like: (1) a single state-wide rate for out-of-state filers, (2) a single national definition of what is taxed, and (3) a single clearinghouse for filing and payment and auditing. This will allow mom-and-pop to still exist, and the states will get their money. It won't fill in all the special cases, and they'll have to figure out some distribution for localities, but that's a small price to pay, isn't it?