Updated at 7:25 AM PDT with new information about the status of the California tax bill.
A growing number of state politicians are proposing new laws to levy taxes on digital downloads, including music, video, and books, as a way to remedy budget pains.
Call it the iTunes tax.
Two years ago, a CNET News.com special report found that 15 states and the District of Columbia said that their laws and regulations meant that digital downloads should be taxed. A few months later, New Jersey joined that list.
Since then, more states have become tax-inclined. In 2008 alone, … Read more