The local businessman cannot, by any means, compete with Amazon since Amazon has infinite virtual shelf space and the infrastructure to support it. The power of buying in the tens of thousands of units gives Amazon a significant price advantage. Now make it even harder by giving Amazon a holiday from all applicable sales taxes.
Local unemployment will continue to rise under that form of "competition". Tax revenues will dwindle since sales taxes drop as do income taxes. Who pays for infrastructure now?
And... Sales Taxes are NOT regressive when applied appropriately. Don't tax food, health and all the basics. Do tax everything else and it becomes a consumption tax. Pay as you go is a pretty fair way of spreading the tax to those who appear to be able to afford it. If you want to buy, buy, buy, then you are taxed.
No one should get off tax free. All this anti-tax crap. Where's the money going to come from to fix your crumbling infrastructure?