There is more of a discussion about the tax thing on the Android Market 
group.  Just enter taxes as a search term.

California developers don't have to worry (yet) because there is no tax 
on electronically downloaded software.  That is probably true of many 
other states though the discussion there mentions some states may have 
passed some new tax laws on it.  It gets more complicated if a developer 
is in a country with a VAT tax.


Streets Of Boston wrote:
> If you're based in the US, you have to set the tax-rates for each
> state.
> I'm in Massachusetts, and this means that i have to set a 6.25% tax-
> rate for just MA. I can leave the other states alone (0%).
>
> I don't know about taxes for customers abroad. You can't set them in
> your Google Checkout settings.
>
> On Nov 11, 11:10 pm, Brian Conrad <[email protected]> wrote:
>   
>> This apparently wasn't just added in the new TOS. It appears in the one
>> posted here earlier dated Nov 4th.  It is buried a bit in the clause and
>> easy to miss.  At least on my transactions I'm not seeing any taxes
>> charged the customer.  Maybe we're getting upset over nothing?
>>
>>
>>
>> Hong wrote:
>>     
>>> I'm pondering about the same thing... it's just too much to deal with sales
>>> tax and the possibility of losing 1 year's worth of sales.
>>>       
>>> On Wed, Nov 11, 2009 at 9:17 PM, Arron <[email protected]> wrote:
>>>       
>>>> At this point I am unsure what to do.  I think after this application,
>>>> all my future applications will just be ad-based.  This is just too
>>>> complicated to deal with.
>>>>         
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