Not correct - some states have chosen to only tax if there is a physical presence in that state. They certainly have the right to. For instance, in Michigan, regardless of whether or not the e-tailer has a physical presence in MI, you have to pay a 6% tax when you file your annual tax return. This is legal because you are a resident of the state, and it's not anything new. For instance, I live in one state and have a job in another - the state I live in still has the ability (and certainly does) tax my income from the other state, just as they have the ability (if they so choose) to tax any commercial transactions involving a shipment into their state.