New York state is the latest U.S. state discussing a possible tax on digital downloads, as more consumers go online to purchase music.
The so-called "iPod tax" needs to be approved by the legislature, and songs sold through iTunes would earn the state 4 percent -- or 4 cents per song. The cities in New York that charge sales tax on top of state tax, including New York City, would charge users an additional 4 cents to download a music track.
According to the state, any book, song, music album or movie sold in New York would be subject to sales tax "no matter if it was bought at a brick and mortar store or downloaded online," according to New York's budget Web site.
Apple CEO Steve Jobs announced at the beginning of 2008 that iTunes has sold more than 4 billion songs since its launch -- the appeal of taxing something such as iTunes suddenly becomes understandable from the state's perspective.
Aside from music, the tax would also add charges for tickets to movies, sporting events, satellite TV, and satellite radio.
The state of New York, led by Gov. David Paterson, now faces a $15.4 billion deficit that lawmakers are unsure how to uncover. Taxing digital content would give the state $15 million for the 2009-2010 fiscal year, and an estimated $20 million for 2010-2011.
Alabama, Arizona, Colorado, Hawaii, New Mexico, Texas, Washington, and several other states are already taxing digital entertainment, with more states likely to follow suit.
Guess what? the rich are getting more greedy LMAO and yes my fellow peoples we all will suffer. What a stupid thing to do an economic down turn, idiots.
New Yorkers had better write a shitload of letters. This will only ENCOURAGE PIRACY. F*cking morons...
If you did write a letter, they would probably tax it.
What happened to voting for whether or not to add new taxes?
The state of New York, led by Gov. David Paterson, now faces a $15.4 billion deficit that lawmakers are unsure how to uncover
hahah will the spending never end
Taxing digital content makes sense but this will be quite a nightmare to collect and control on. As a digital download site www.contentrealtime.com, how are we supposed to know where the consumer is from (they could be logging in from an aiport) or where they live (we are not taking a physical ship to address, only a bill to address attached to a credit card), much less where they consume the content (someone from New York buys a digital download while at DFW airport in Dallas, Texas, then consumes it on his flight to London, and never consumes that again). Does he owe sales tax to the State of New York? Help me understand exactly what the State did to aid or abet this sale?
If we are going to do this, it should be a multi-state flat tax rate, and it should be split directly with the content creators.
Char
technically speaking you can use any of the GEO IP databases from around the globe and easily find out (check hostip.info) however people can use proxies, anonimizing services and a lot of tricks to engineer their IP and they will in order to avoid paying
I dont know but I think this will be a great time to set up a proxy in NY and charge people a fee for anonimizing services
The tax will be based on credit card billing address. Many was to work around that one...cdfreaks are very resourceful.
Do they collect a tax (per listener) on every song played over the radio? Or every television show broadcast (per viewer?) Downloading a song has just as much impact on the government as watching tv or listening to the radio. This is just a grab for cash. And the stupid sheep that live in NY will let it happen.
Geez, what a bunch of dipshits. It's sad that the people who choose to govern have absolutely no idea what government is for, nor do they understand the role of taxation. Taxes like this would make the founders puke, and grab their guns.
The guy is an idiot.
Wow, you guys really don't like this plan by the state of New York, eh? I'm not entirely surprised, but some of you have been a bit more emotional than I originally planned.
I'm glad this type of tax move was struck down in California, and hope my state's legislators continue to frown upon this type of blanket tax.
most goverment officials are idiots and would be fired if they were working for any company in the private sector. They get into office like bush start with a eight trillion dollar deficit and he leaves with it doubled tell me a company who would put up with that. the new motto in washington is whats in it for me. all the great countries have fallen look at rome. this one is heading the same way if they do not stop there pork belly tactics. we have so many free loaders in this country its not funny. people are getting laid off and services cut while we suppot all the illegal aliens that are infesting this country. when are we going to wake up and stop this nonsense. close off the boarders and send back all the illegals this will help a lot. why am i paying for some one who has no right to be here. you break a law and its ok? lets end this madness and stop the bleeding
New York, New York, you can have it. It has used up all its good will.
