With the economic crisis hitting state budgets hard, some of them are trying hard to create new revenue. GamePolitics reports that the state of New York is looking into adding lots of new taxes, including downloadable content such as movies, music and of course games.
The budget, proposed by current governor David Patterson, would "...Imposes state and local sales tax on purchases of prewritten software, digital audio, audio-visual and text files, digital photographs, games, and other electronically delivered entertainment services to achieve tax parity." As Shacknews points out, a number of other states already impose taxes on downloadable content.

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If they impose already-existing sales tax on downloads, no big deal. Seems fair to me. Just as long as they don't create additional taxes exclusively for downloaded content.
I'm in WA, so this doesn't affect me (and I already have to pay sales tax on downloads), but I don't want to see a rut of extra taxes that discriminate against people who don't buy things in retail boxes.Posted at 12:48PM on Dec 18th 2008 by Covarr