US States Looking to Tax Electronic Downloads
 

Despite high piracy rates, digital content services are riding high. Some like Valve have made a lucrative business off distributing video game content such as the Half Life, Doom, and Grand Theft Auto games (the latter two licensed by id and Rockstar respectively). Others, such as iTunes and Rhapsody have cashed in on the music business as well as TV episode content.

And though the good times may be rolling for online business, those happy times may be nearing an end. Many states are after the $130B USD untaxed digital market and salivating at the prospective tax revenue. While internet taxes may have been shot down at the national level, some states aren’t as forgiving.

http://www.dailytech.com/States+Look...ticle12638.htm