What makes you think the retailers who are pushing this are "small and local?" A quick look at the groups that have lobbied in favor of this shows that clearly isn't the case. And as Nix point out previously, Amazon is hardly a "local brick-and-mortar."
Because of its localized distribution centers Amazon has reached the point where it has, or soon will have, to collect State sales taxes in most states. (In some cases Amazon negotiated a temporary moratorium as a condition of locating a distribution center in a particular State.) When it comes to the big e-commerce sites, they're in the same boat as brick-and-mortar in that they have to collect sales taxes. Changing the rules would mainly affect smaller e-commerce sites with few if any physical sites beyond their HQ.