As U.S. states deal with huge budget shortfalls, Wisconsin announced Thursday it will implement a 4 percent tax on all digital downloads beginning October 1, The Register reported.

This includes "digitally delivered entertainment services," such as music, movies and ebooks. The state of Wisconsin faces a US$600 million deficit.

In April, New York passed a bill that also taxes all downloads, including pornography, which angered consumers and some lawmakers, as well as Amazon, which sued the state, paidContent reported Friday.

The download taxes apply to retailers, but are typically "passed on to consumers as a new line item on their e-bills," according to paidContent.