Agreed 100% but it is more complicated for online shopping in general as sales tax is largely unknown in many cases until you have billing or shipping address which is not always known upfront.
In the case of this rule though, related to events and short term lodgings, there is a pretty obvious jurisdiction in most cases so allowing a “government charges” exemption is nonsense.
America has thousands of tax jurisdictions, every state, county, city/town can impose their own set of taxes. For the longest time, online shopping was effectively tax-free shopping unless you happened to be based in the same state as the seller. That is largely not the case anymore though as various states passed legislation to enforce tax collections on online sales rather than trust the consumer to volunteer that info when it’s time to fill out tax forms.