Originally Posted by HaggisMacJedi
Long story short: I expect us all to have to pay local taxes on Internet purchases by the end of the year, including e-books.
Most states actually expect you to report out of state purchases that you haven't paid sales tax on (though obviously no one does). In the current economic climate, it doesn't surprise me in the least that the states are looking to hit up Internet purchases for their sales and use tax revenues. Businesses have been subject to out of state sales tax audits for a long time.