Thus forcing the businesses to pay or be punished. The business likely has the option of not passing the cost along to the consumer, but in the end they are the one being forced to pay the state.
For example, at my company, I won’t hire anyone from Kentucky because their employment costs are too high. It’s a choice I get to make. I limit my employee pool but I also avoid costs I don’t like.
Being based in California I can’t choose to follow California tax law or not, but I also get to vote here.