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Tax is being charged for state and the buyer's city not my business's city -- is that correct?

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I have a brick and mortar businesses too and we pay local sales tax for each city or municipality where we are physically located.  However, for my online store it appears to be charging state and city sales tax for the buyer.  Is that correct?  I'm worried that the city where I registered this business is going to come after me for sales tax.  Also -- where is this collected tax revenue going?  I'm using Shopify payments by Stripe.

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