Not quite. For you to be liable for it, the entity that wishes to collect from you has to be able to sue you in a court that (1) recognizes that you are liable for it, and (2) has personal jurisdiction over you.
Generally, courts of the region in which you reside have personal jurisdiction over you. So, if you and the collecting entity are in the same state, then that state's courts satisfy #2.
If you don't reside in a region, that region's courts may still have personal jurisdiction over you depending on how your activities relate to that region. There has to be some connection between you and that region, and you have to have purposefully done something to create or benefit from that connection.
As the Supreme Court put it in an important case on jurisdiction (Hanson v. Denckla), "unilateral activity of those who claim some relationship with a nonresident cannot satisfy the requirement of contact with the forum State. The application of that rule will vary with the nature and quality of the defendant's activity, but it is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protection of its laws."
So, getting back to the question that was at the start of this branch of the comments, if the small streaming business really has no contacts with the out of state municipality trying to collect taxes, and has not purposefully tried to get customers from that municipality, it is unlikely they would be liable for the taxes of their customers in that municipality. (But check with a lawyer familiar with your state's tax laws--you want to make sure your state has not entered into some sort of reciprocal tax collecting arrangement that does require collecting taxes on transactions between the two).
There's a lot of case law on this. Googling for "Personal Jurisdiction" is a good start if you want more on this. (And while Googling, be sure to take some time to make sure that Hanson v. Denckla is still good law...I haven't checked to see if it has been overturned or superseded).
You're confusing separate jurisdictional issues. Personal jurisdiction is relevant to the underlying lawsuit, because it can nullify a judgement.
Personal jurisdiction isn't very relevant to an enforcement proceeding, as presumably it is filed in the state in which the defendant is located. For a business, this generally means any state in which it is incorporated, registered as a foreign corporation, or has facilities such as (but not limited to) offices or factories. If a court doesn't have personal jurisdiction over a defendant in an enforcement proceeding, that simply means the plaintiff needs to file again in the proper venue.
My first paragraph was badly written, so perhaps made it look like I was talking about the enforcement proceeding to collect whatever was won in the underlying lawsuit.
The intent, though, was to talk about the underlying lawsuit, and the effect of a lack of personal jurisdiction of that court over the defendant.
Generally, courts of the region in which you reside have personal jurisdiction over you. So, if you and the collecting entity are in the same state, then that state's courts satisfy #2.
If you don't reside in a region, that region's courts may still have personal jurisdiction over you depending on how your activities relate to that region. There has to be some connection between you and that region, and you have to have purposefully done something to create or benefit from that connection.
As the Supreme Court put it in an important case on jurisdiction (Hanson v. Denckla), "unilateral activity of those who claim some relationship with a nonresident cannot satisfy the requirement of contact with the forum State. The application of that rule will vary with the nature and quality of the defendant's activity, but it is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protection of its laws."
So, getting back to the question that was at the start of this branch of the comments, if the small streaming business really has no contacts with the out of state municipality trying to collect taxes, and has not purposefully tried to get customers from that municipality, it is unlikely they would be liable for the taxes of their customers in that municipality. (But check with a lawyer familiar with your state's tax laws--you want to make sure your state has not entered into some sort of reciprocal tax collecting arrangement that does require collecting taxes on transactions between the two).
There's a lot of case law on this. Googling for "Personal Jurisdiction" is a good start if you want more on this. (And while Googling, be sure to take some time to make sure that Hanson v. Denckla is still good law...I haven't checked to see if it has been overturned or superseded).