system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How are there no taxes on digitally downloaded content? What makes it different from physical copies that the government chooses not to tax it?
gpt
The federal government does not levy any sales taxes, only states do. That's easy enough when something is purchased by a consumer at a physical location in the state, but when a consumer purchases content from a provider in another state, it's a little more complicated. The law hasn't quite figured it out yet, so digital content stays exempt from sales tax.