Because the content is assumed to pass through at least one server outside the state due to the way the Internet works . You can say this about literally any product sold anywhere . Which is why tax law works based on whether or not a seller has a nexus in the state , which is defined as either an owned or rented area within the state irregardless if the product is sold directly from that facility . A rented room or facility is a nexus , irregardless whether the specific item is sold or shipped from there . There is zero question that companies with physical equipment in a state have a nexus in the state and are subject to sales tax on all items sold within the state zero question as in this is a done deal at the supreme court level . As much as you want to say otherwise , this is law . Where the real question comes is whether or not a virtual machinecloud service constitutes a nexus . Some states are attempting to classify these as nexus ' s and those may violate the interstate commerce clause .