Sales tax might have once been a convenient way to tax people by locale, but it meshes poorly with the internet. If there must be a per-sale tax on internet goods, it should probably be a new type of tax which reflects the fact that the internet isn't related to geography. If anything, it should be a flat tax.
Yes, however: (1) property taxes do not fund the entire school budget in most states and (2) states spend money on a great deal more than just schools.
If anything, it should be a flat tax.
Um, isn't sales tax already a flat tax? It sounds like you're describing the simplified internet sales tax agreement mentioned in the article...is that true?