‘iPod tax’ proposed for online music downloads

“Legislators in Wisconsin are mobilizing against a proposal they call the ‘iPod tax,’ in a battle over online music and movies that could soon spread across the United States,” John Borland reports for CNET News. “At issue is whether consumers need to pay tax on digital downloads such as movies or songs purchased from Apple Computer’s iTunes store. Already in a few states, those who don’t voluntarily pay a few extra cents of tax on their 99-cent downloads are technically breaking the law.”

“Wisconsin Gov. Jim Doyle now wants his state to start collecting taxes on digital music, videos and software. Key Republicans in the GOP-dominated legislature say they will block the proposal, but administration officials say they’re just trying to make things fair… A spokesperson for South Dakota’s Department of Revenue said that state’s sales tax laws already apply to digital downloads. In Utah, too, iTunes shoppers who aren’t paying tax aren’t following the rules,” Borland reports.

Full article here.

MacDailyNews Take: “Collecting more taxes than is absolutely necessary is legalized robbery.” – Calvin Coolidge


  1. I live in New Hampshire. What’s Sales Tax?

    I think this should all be covered under the taxes, fees, surcharges, and whatever my ISP tags to my bill because “the government wants them to”.

  2. I never even heard of that, hooty.

    I am amazed.

    Personally I think a sales tax would kill the business. The only reason people are buying this stuff is because 99 cents sounds so cheap, even if its only 1 cent less than a full dollar.

  3. Downloading from ITMS costs $0.99 plus sales tax @ 8.25% in Louisiana.
    The Apple store also charges Sales Tax for Louisiana.

    I thought Apple charged sales tax in all states that had a Sales Tax.

  4. Those of us who live in Washington State pay sales tax on music store downloads as well. Apple charges state sales tax for anything you buy from their on-line stores. I suspect this new tax is for those other online music stores that aren’t currently charging sales tax because they have no physical presence in Wisconsin.

  5. I live in Wisconsin, and I thought I was paying tax, that is until after I reviewing my latest receipt from iTunes. I get charged sales tax on other things I buy online, why not music?

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