Window tax was created in 1748.

No, but there was a window tax introduced in 1696 by William III

I was qouted $217.95 plus tax to replace a shattered driver window.

Tax discs no longer need to displayed and there is no penalty for displaying an expired disc.

I am not sure if you are a contractor or homeowner but the anser is yes. If you are a contractor you will be paying tax on the price of the window because you have charged for it. If you are a home owner the sales tax should have been included in the total cost of the job.