I happen to live in one of the great states that has already implemented the internet use tax. The way the collect it here is during tax time. They have a box asking if you've made any internet purchases. I'll be honest, there is no way possible that I can remember all the purchases I've made via the internet during a year, so I usually don't bother. Probably not the smartest thing to do, but hey it is what it is. About a week ago I logged onto my paypal to find an error message claiming a problem with my account. They need my tax number to be able to re-enable certain features of my account. So it looks like they are going to be using paypal to monitor online purchases. Honestly I wouldn't even mind the tax if they could do it at the time of sale. But, having to keep up with everything I buy on the net for a year seems like a major pain. I'm a single male and I claim 0 deductions, so uncle sammie already takes a healthy portion of my income. Looks like I'll be losing whatever refund I get to use tax from now on. I don't even know what kind of purchases are to be taxed. Do I have to pay tax on online music downloads, forum subscriptions, online software downloads. Online purchases made from an individual? Trades? Does anybody that already deals with this have any info/tips to keep on top of this use tax.