The (Virtual) Tax Man Cometh

One of the (many) great advantages of the Internet is that it can deliver digital content — software, music, movies, etc. — right now. Thanks to downloading and digital distribution, you don’t have to go to a store, don’t have to parking and traffic, annoying packaging or unhelpful store clerks — and you you don’t have to pay taxes on what you download.

In South Dakota, however, that may be about to change. GamePolitics reports that the state currently has a bill in the pipeline that would add a tax to any digital purchase you make. The bill calls for:

…a tax at the same rate as that imposed upon sales of tangible personal property in this state upon the gross receipts of all sales, leases, or rentals of any product transferred electronically.

In theory, this could affect purchases from iTunes, Xbox Marketplace, Amazon digital downloads, and just about any other place that allows you to pay for and receive digital content.