Several other money-strapped states have mulled going after the taxes.

Spitzer's proposed budget would require Internet giants like Amazon to collect tax on an estimated $47 million in sales to New Yorkers, who are currently required by an honor system to report how much they spend online on their tax returns.

Amazon spokesman Paul Misener says the governor's plan would be a radical departure from anything currently being done in the U.S.

He says other states — including California, Michigan, North Carolina and Texas — have considered similar plans, but abandoned the idea.