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Because your state doesn't have enough of your hard earned dollars to blow on useless crap, many are implementing taxes on downloads of intangible property such as software and music.
A CNET News.com analysis shows that 15 states and the District of Columbia now tax downloads of music, movies and electronic books. Some high-tax states such as California do not levy the same charge on iTunes downloads, but that could soon change.
More states are beginning to tax downloaded products, said Steve Krantz of the Council on State Taxation, which represents companies that do business in many states. Some are doing it through specific legislation. Others are doing it through the interpretation of previous law.
Whole C-Net story here. Odd to see NYT seeming to argue against a tax. Story here (registration may be required).