Thursday, April 16, 2009

New taxes on digital downloads

Because of quirks in many state laws, sales taxes may be levied on CDs sold in storefronts but not on iTunes and other digital downloads. It's a situation that recession-weary, tax-hungry politicians are hoping to change. A growing number of states are considering laws to tax digital goods, such as iTunes songs, Amazon MP3s, or electronic books. Yet at a time when governments say they want to encourage broadband adoption and the development of a low-carbon economy, opponents say taxing digital goods sends exactly the wrong message...cnet news

Mississippi is the most recent state to adopt such a tax, it goes into effect on July 1. Seventeen other states claim the authority to tax digital downloads, and more a seeking the authority.

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