It basically comes down to what side of the sociopolitical fence your state generally stands on. And of course, in CA... you have a government that basically thinks business people are a big bunch of scamming meanies, that go around taking advantage of everybody. So then they are on the side of protecting the 'little people'... John Q public, from all the terrible atrocities that us evil business people commit against them all the time. So I assume they look at it like it would be a terrible crime to make a person possibly pay .25% more in tax for an item they bought online, as compared to the percentage where they live. Of course... There probably shouldn't be different rates in the first place, but that's a whole other can of worms.