Aug
Taxation on digital downloads becoming a trend
In 2008, nine states in the Union enacted laws that enable taxation on digital transactions. I bet you didn’t know that. You might also not know, then, that other states look to be quickly following suit. It all makes perfect sense, really. In an economy that is plainly faltering, the states see it as yet another new tool to bring their financial woes to an end. It is estimated that $130 billion are spent every year in online transactions, so there certainly is money to be made.
Right now, the states that tax downloads include Alabama, Arizona, Colorado, Hawaii, Idaho, Indiana, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, South Dakota, Tennessee, Texas, Utah, and Washington. “Downloads” is a relatively loose term, though, meaning that everything from iTunes to Amazon can be taxed but smaller-scale dealers may get away with it. In fact, the International Federation of the Phonographic Industry estimates that there are over 500 legal, legitimate music download services that can currently be taxed.
It’s not all bad news, though. While other states are likely to follow suit, there are a few big-name online services fighting the taxes. A coalition comprised of 1-800-Contacts, America Online/Time Warner, American Vintners Association, Association for Competitive Technology, CapNet, eBay, Electronic Retailing Association, Internet Alliance, NewsCorp, Oracle, VeriSign, Yahoo!, and The Wine Institute called NetChoice has hired lawyers and is actively arguing against every new law of this type. They’re also arguing for the online sale of wine, another worthy cause.
Read more at C-Net
Tags: cable, plasma, video games, hdtv