iTaxes in Washington

From CNet:

Did you know that our state is one of 17 states that tax music downloads.

Washington state law, for instance, does not explicitly permit the taxation of digital downloads, but the state taxes them anyway. Previously, the Washington Department of Revenue told CNET that it taxes downloads on the basis that they fall under the definition of computer software, which is taxable.

"As these technologies meet, there is this question of what is digital goods and what is software," said Drew Shirk, a legislative policy coordinator for the Washington Department of Revenue.

To answer those questions, the state legislature commissioned a committee, chaired by State Representative Ross Hunter, to provide a report to the legislature by the end of the year "to define where technology is today and how it should be taxed," Shirk said.

I wonder if illegal downloads are taxed too?

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