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A new twist on sales taxes: Are in-game purchases like “powerups” a transaction? Yes. Will they be taxed is a different question

Are in-game sales taxable transactions? In essence, the user/gamer is trading real money for a digital product. While that product may not exist outside of the game, it is a transaction that has value. In fact, it's a billion dollar industry, and one that has gone untaxed even by states and other jurisdictions that likely already have the legal authority to tax the transactions.

Isaac M. O'Bannon