So CNET has a scare-you-to-bits piece about states beginning to tax digital downloads like iTunes. Nine states “have considered” such a tax this year alone, while the great state of Tennessee will tax “the retail sale, lease, licensing, or use of specified digital products transferred to or accessed by subscribers or consumers.”
Then CNET brings up something called “nexus,” which is the reason why Amazon now charges tax in New York. Basically, if an online business has a physical presence in a state, it has to collect taxes on all orders.
Raise your hand if you’re shocked.