‘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

33 Comments

  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?

  6. Beatles
    Taxman

    “Let me tell you how it will be
    There’s one for you, nineteen for me
    ‘Cause I’m the taxman, yeah, I’m the taxman

    Should five per cent appear too small
    Be thankful I don’t take it all
    ‘Cause I’m the taxman, yeah I’m the taxman

    If you drive a car, I’ll tax the street,
    If you try to sit, I’ll tax your seat.
    If you get too cold I’ll tax the heat,
    If you take a walk, I’ll tax your feet.

    Don’t ask me what I want it for
    If you don’t want to pay some more
    ‘Cause I’m the taxman, yeah, I’m the taxman

    Now my advice for those who die
    Declare the pennies on your eyes
    ‘Cause I’m the taxman, yeah, I’m the taxman
    And you’re working for no one but me.”

    Enough Said

  7. As much as I hate taxes, from a legal point of view, wouldn’t digital downloads be the same as ordering a product from out of state?

    We don’t pay sales tax on iTMS purchases here in the province of Ontario, Canada. Which is kind of weird, I just assumed the tax was built-in to the price. Anyone know what the sales tax deal is in Canada and if you live in any other province, have you been charged sales tax on iTMS purchases?

  8. In GA, we pay taxes on the songs. I thought that the way online taxes worked was like this:

    If an online retailer had a physical presence in your state, then they HAD to collect sales tax on all transactions between them and residents of that state.

    Since Apple has a couple of stores in Atlanta, then they must collect sales taxe on transactions for GA residents.

  9. Wow, here in the home of Apple, where we are often taxed for flatulence, we pay no tax for iTunes, although since I can count the number of songs purchased on two hands, it probably wouldn’t have mattered all that much.

    By the way, I think that California is very innovative on taxation and the internet, since most of the companies are headquartered here. I’ll bet the State of Washington is also the same.

  10. I live in Wisconsin… I didn’t vote for Doyle… He cut funding to the state college system here right after he got into office. That was smart, now he wants to tax the music i listen to… may as well tax thinking and listening skills…what Bull $#*%!!!

  11. In Utah those 99cent songs come to $1.06 after taxes. Always been that way since I started buying from it last year. However, I’m used to everything being sales taxed in Utah, so I don’t mind. It is still a good deal in my book.

  12. From: bt express
    Mar 10, 05 – 04:01 pm
    “Legislators in Wisconsin are retarded!!!!”

    Just reply on what BT EXPRESS said, the legislators in Wisconsin “are mobilizing AGAINST a proposal…” “Wisconsin Gov. Jim Doyle now wants his state to start collecting taxes on digital music,” NOT the legislators. Unless you are FOR taxation? I know that I am not.

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