Politicians push for new sales taxes on Apple’s iTunes Store

“A growing number of state politicians are proposing new laws to levy taxes on digital downloads, including music, video, and books, as a way to remedy budget pains,” Anne Broache reports for CNET. “Call it the iTunes tax.”

“Two years ago, a CNET News.com special report found that 15 states and the District of Columbia said that their laws and regulations meant that digital downloads should be taxed. A few months later, New Jersey joined that list,” Broache reports.

“Since then, more states have become tax-inclined. In 2008 alone, Indiana, Utah, and South Dakota have enacted laws reiterating their commitments to collect taxes on digital downloads, while Nebraska recently voted to send its governor a bill (PDF) that would tax downloads of books, movies, and music starting October 1,” Broache reports. “Others, including Wisconsin and Massachusetts, have formed groups to ‘study’ new iTunes taxes.”

Broache reports, “Opponents–including a wide array of Internet companies, retailers, local chambers of commerce, and the Motion Picture Association of America–argue the new fees will impair digital media sales and, at least in some cases, reduce the incentive of high-tech companies to do business in high-tax states.”

Full article here.

Nothing’s certain, but death and taxes… and death taxes.

88 Comments

  1. I don’t know other service like amazon, wal-mart, etc. do they charge taxes as well? I don’t see that yet. so is it necessary to add tax for electronic transaction just like other item? I don’t know. I hope not. is it some kind of greedy of government? just leave me alone.

  2. …and, at least in some cases, reduce the incentive of high-tech companies to do business in high-tax states

    Imagine, iTunes available across the world, except in Michigan and Nevada because of digital download taxes. Still no sales tax in Delaware! ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

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