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Taxes on downloaded files
From: David Farber <dave () farber net>
Date: Thu, 13 Apr 2006 17:28:16 -0400



Begin forwarded message:

From: Bob Devine <devinebob () gmail com>
Date: April 13, 2006 2:25:24 PM EDT
To: dave () farber net
Subject: For IP? Taxes on downloaded files

Here is a nicely researched article on the confusion over state sales tax
on downloaded music files.  Governments want to get their hands on
it now that it is a very large and tempting honeypot. State officials are
saying, apparently with a straight face, that data files are programs in
order to tax them.

This issue of what is taxable is probably going to have several court
cases before it settles down. But as with everything, the internet doesn't begin or end at a national border. Even a Federal court isn't the final voice.

http://news.com.com/2009-1022_3-6059914.html? part=rss&tag=6059914&subj=news

" Internet shoppers accustomed to tax-free purchases from Apple
Computer's iTunes Music Store soon may be in for an unpleasant
surprise.

State legislatures and tax officials, eager to find new ways to boost
government spending and curb budget shortfalls, are eyeing the
burgeoning market for digital downloads as a potentially lucrative
source of revenue.

A CNET News.com analysis shows that 15 states and the District of
Columbia now tax downloads of music, movies and electronic books. Some
high-tax states such as California do not levy the same charge on
iTunes downloads, but that could soon change. [...]"

Bob Devine


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