Washington state, that is.

The nation’s long break from paying taxes on items purchased through the Internet may be facing an end as states like Washington look to cash in. Because it’s based on a destination tax system, such collections may prove to be a nightmare for small business owners.

The law alters the way taxes are calculated — a major change that is also a logistical headache for small retailers.

If you shop in a store, you’ll pay the tax rate of where the store is. But if you have goods delivered to your home, you pay the tax rate of where you live.

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There are about 350 tax districts in Washington. The new law forces retailers — or their accounting systems — to recognize the different tax structures of each district.

“My reaction has been pretty much like each other person I’ve heard from who’s found out about it: What in the world? How in the? That’s crazy,” said John Marshall, co-owner of Episcopal Bookstore in Seattle. “This is really a burden on us.”

The Seattle Post-Intelligencer has more on the story here.