1. I live in Wisconsin.
2. Technically, this isn't new. As people said before, there is a place on the Wisconsin Income Tax form where we are supposed to self-report all purchases made out of state(including mail order, online, etc.).
3. I really don't mind.
I buy all of my music from iTunes. I've never bought a whole album online. So, the $.05 cents per download(or soon to be $.04 or $.06 with the new $.69/$1.29 pricing) is still better than the $.71+ if I had to buy the whole cd from the local brick and mortar store.
How would this affect places like Netflix, where I pay a monthly subscription fee to stream movies? Do I pay sales tax on the $8.99? That's still much better than the $.16 I pay at the local video store for EACH movie.
In the grand scheme of things, I still come out ahead. The state still loses out on some amount of revenue, though I'm a tiny bit poorer than if this tax levy hadn't been passed.