Yes they do pay the sales tax...and in order to compeat with the net, the store has to lower costs to equal out that sales tax..just to break even in cost the the person buying. Meaning in order to have a level playing field, the store has to pay the cost of that tax, or have a higher price then the online site. And if you think the cost or running a store is the same as a online store minus the cost of the building you seem to have a poor grasp on one of the 2 types or both. Im lucky that while I am in sales my store does not have a great online place we need to compeat against due to the specific industry...But others that I have worked in , you spend 3 hours talking to someone about what the best system is, the best way to do it, the advantages and disadvantages of each...and are paid to have knowledge, spend lots of time training and learning everything anyone could ever want to know...and then they just go home and buy the thing online because they can always sell it for less, because we do their work for them. Its one reason I do not shop online unless its something I am unable to find anyplace at a real store.