Several states are looking to start applying taxes to digital downloads from sources like iTunes, Amazon, Yahoo Music, etc. Taxes on digital media has been a large point of debate since 2006 when 15 states enacted laws taxing downloadable content.
Among the states currently debating the issue is California, whose $8 billion budget deficit has state legislators looking for any kind of economic fix. Some states choose to apply the taxes as sales taxes, with residents paying at the time of the download. Others choose to apply a "Use Fee" in their annual tax-filings.
What do you think, public tax-payers? Are you hip to an extra few cents per song on iTunes? Let us know what you think.