tangor - 5:18 am on Jul 2, 2011 (gmt 0)
Illinois to collect sales tax for a state I don't operate in at all.
If you don't sell to CA customers (nor operate as a CA affiliate) then there's no problem. If you do SELL outside of your state, then every state that collects sales tax or use tax MIGHT view that as operating in their state. What's wrong here (and has been from the get go) is the CUSTOMERS not reporting their purchases to their resident state and paying either the sales tax or use tax for that item(s). And it is a loophole which consumers and on-line retailers have taken advantage of for many years.