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coach store vancouver downtown Internet worry they will be swamped by new requirements from faraway states. "We don't have an accounting department, we've got my father in law."Davis started the company in 1999 and now runs it with her brother in law. They have 26 workers and three stores, in Beverly Hills, San Diego and San Francisco. The company collects sales taxes from customers who live in California, but not from people who live in other states, Davis said. Under the law, states can only require stores to collect sales taxes if the store has a physical presence in the state.That means big retailers, such as Wal Mart, Best Buy and Target, with stores all over the country collect sales taxes when they sell goods over the Internet. But eBay, Amazon and other online retailers don't have to collect sales taxes, except in states where they have offices or distribution centers.As a result, many online sales are essentially tax free, giving Internet retailers an advantage over brick and mortar stores.But the purchases aren't really tax free under the law.In states with sales taxes, if you buy something from an out of state retailer and don't pay taxes, you are supposed to pay those taxes when you file your state tax return, said Neal Osten, director the Washington office of the National Conference of State Legislatures.Only Delaware, Montana, New Hampshire and Oregon have no sales tax. Alaska has no state sales tax but does have local ones.Unpaid sales taxes are usually referred to as "use taxes" on state income tax returns. Use taxes apply to purchases made over Internet, from catalogs, television and radio ads and purchases made