Taxing digital content makes sense but this will be quite a nightmare to collect and control on. As a digital download site www.contentrealtime.com, how are we supposed to know where the consumer is from (they could be logging in from an aiport) or where they live (we are not taking a physical ship to address, only a bill to address attached to a credit card), much less where they consume the content (someone from New York buys a digital download while at DFW airport in Dallas, Texas, then consumes it on his flight to London, and never consumes that again). Does he owe sales tax to the State of New York? Help me understand exactly what the State did to aid or abet this sale?
If we are going to do this, it should be a multi-state flat tax rate, and it should be split directly with the content creators.