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#1 2008-04-16 11:06 pm

Bat
Flawless Cowboy
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From: Björk, Björk
Registered: 2001-05-14
Posts: 28541

Pols pushing new download sales taxes

Politicians push for new iTunes sales taxes

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.

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.

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. Others, including Wisconsin and Massachusetts, have formed groups to "study" new iTunes taxes.

http://www.news.com/8301-10784_3-991839 … =nefd.lede


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#2 2008-04-17 12:58 am

matt
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Re: Pols pushing new download sales taxes

If they want to destroy the entire download market, that will do it.

And of course the taxes won't go to improving broadband.


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#3 2008-04-17 1:39 am

robco
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Re: Pols pushing new download sales taxes

Taxing the sale of consumer goods in general hasn't killed the market for those goods. The states are losing revenue in lost sales taxes to downloads. It's not completely out in left field.

As for improving broadband, that really isn't the responsibility of government. One would assume that the ISP is charging for bandwidth and making some profit. Shouldn't that money be used to improve broadband?


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#4 2008-04-17 2:13 am

arkayn
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From: Golden Valley
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Re: Pols pushing new download sales taxes

I pay sales tax when I buy something from iTunes.


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#5 2008-04-17 5:58 am

avkills
demyelinated brain matter
Registered: 2001-05-09
Posts: 7094

Re: Pols pushing new download sales taxes

Yeah I think I pay sales tax on iTunes also.

-mark

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#6 2008-04-17 6:03 am

garrythegarlic
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From: Honoulu, HI Post
Registered: 2001-03-12
Posts: 1204
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Re: Pols pushing new download sales taxes

I know I do.  My 99c tracks cost me $1.03.


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#7 2008-04-17 7:38 am

MacZiMiZer
Jack of All, King of None
From: US of A
Registered: 2001-10-25
Posts: 1551

Re: Pols pushing new download sales taxes

Maybe they could consider actually running budgets like budgets?  You know, cut down on wasted money, put money where it should be, have priorities that make ethical and logical sense?  How much money are we really talking?  It's not like every sale is going to give taxes to every state.


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#8 2008-04-17 7:39 am

test
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From: Collingwood, Ont., CANADA
Registered: 2002-12-13
Posts: 5300

Re: Pols pushing new download sales taxes

I realise the story is about the U.S. market but just for the sake of comparison or whatever I'll mention I've never been charged tax on iTunes purchases. I find it odd but I'm not complaining.

Last edited by test (2008-04-17 7:40 am)


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#9 2008-04-17 9:59 am

user
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From: I'm not getting you down, am I
Registered: 2001-10-15
Posts: 16016

Re: Pols pushing new download sales taxes

Interesting.

I was told once that if I sell a photo as a print I have to collect NC sales tax but if I sell the same image as a digital file over the internet, I don't.


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#10 2008-04-17 1:06 pm

arkayn
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From: Golden Valley
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Re: Pols pushing new download sales taxes

Apple has to collect tax in Arizona as they have a physical presence in the state. That is why Amazon does not charge me as they don't.


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#11 2008-04-17 1:51 pm

robco
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From: Sodom
Registered: 2004-12-04
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Re: Pols pushing new download sales taxes

MacZiMiZer wrote:

Maybe they could consider actually running budgets like budgets?  You know, cut down on wasted money, put money where it should be, have priorities that make ethical and logical sense?

It would be nice if individual citizens did the same. You think public debt is out of control? Private debt held by businesses and consumers is even worse.


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#12 2008-04-17 2:52 pm

wellfleation
High on Life
From: Metheun, Mass.
Registered: 2001-11-13
Posts: 8672

Re: Pols pushing new download sales taxes

arkayn wrote:

Apple has to collect tax in Arizona as they have a physical presence in the state. That is why Amazon does not charge me as they don't.

Exactly as to why some here are saying they pay tax on iTunes downloads and some do not. I pay as well as Apple has a physical presence here in Mass.

This tax would be for across the board including sites with no physical presence such Amazon. Imagine how many people buy big ticket items and pay no sales tax?


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#13 2008-04-17 3:34 pm

arkayn
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Re: Pols pushing new download sales taxes

What are they going to do about states like Oregon which does not have a sales tax at all?


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#14 2008-04-17 5:54 pm

Pariah
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From: Belly Of The Beast, Oklahoma!
Registered: 2001-05-24
Posts: 18394

Re: Pols pushing new download sales taxes

Most states have laws on the books you are supposed to pay sales tax on things you mail order.
Pretty much the same thing. Why should you obliged to pay tax on phone or mail orders but not pay for an online purchase?
Dont get me wrong, I LOVE not paying locals sales tax when shopping online. It saves me tons of money because my local sales tax is 8.75%
But as we all know online sales of everything will eventually kil off many types of brick and mortor stores. When the local malls start becoming ghost towns the revenues will have to be replaced, one way or another.


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#15 2008-04-17 6:47 pm

MacZiMiZer
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From: US of A
Registered: 2001-10-25
Posts: 1551

Re: Pols pushing new download sales taxes

Aye but the question is, should the sales tax go local or to where the shipping item is being sold?  In the old cases about porn and other "bad" websites it was decided that by going to a website you were "going to it" and not bringing it into your state.


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In loving memory of my Grandmum Shirley.
"Are you the one who keeps tellin' me to beware?  Cause I'll tell you where to be!"
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#16 2008-04-17 8:05 pm

Pariah
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From: Belly Of The Beast, Oklahoma!
Registered: 2001-05-24
Posts: 18394

Re: Pols pushing new download sales taxes

MacZiMiZer wrote:

Aye but the question is, should the sales tax go local or to where the shipping item is being sold?  In the old cases about porn and other "bad" websites it was decided that by going to a website you were "going to it" and not bringing it into your state.

I would think the same way it is for mail or phone orders. The tax is owed where the end user is.


"and it's not surprising that they get bitter, they cling to guns or religion or antipathy to people who aren't like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations."
Barack Obama

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#17 2008-04-20 7:23 pm

Temetka
High Priest
From: Behind the altar...
Registered: 2002-07-02
Posts: 2149

Re: Pols pushing new download sales taxes

Every American should pay taxes.

That being said, how do they plan on regulating this?

Do I have to sign up with YouTube to download user generated content?

Or will it be just a standard fee on my broadband bill?

I know when I pay for software on line (never made an iTunes store purchase, and I don't think I ever will) I pay taxes depending up the state that the company resides in?

This sounds like something that could easily morph into a blanket tax and just start taxing me on my internet usage (i.e. how megs I download, of ANY content). They've been wanting this for years and the easiest way to build a road is with stepping stones.

That or I am crazy. We'll know in a few years.


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#18 2008-04-21 11:14 am

Jasoco
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From: Doylestown, PA, USA, Earth
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Posts: 8845
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Re: Pols pushing new download sales taxes

Weird, I don't pay any tax on iTunes music. I've checked a few times, but it's always 99 cents.

What states do they charge tax in? I'm in PA. We have 6% sales tax.


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#19 2008-04-21 3:14 pm

C. Ives
We're All Mad Here
From: Wonderland
Registered: 2001-03-05
Posts: 2064

Re: Pols pushing new download sales taxes

I've always paid tax on iTunes purchases, but they also ask what county I'm in to determine the right amount.  I think I'm getting state tax (WI) and county tax.

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#20 2008-04-21 4:14 pm

Fried Chicken
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From: Good question - keeps changing
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Posts: 4557

Re: Pols pushing new download sales taxes

Or, we could have less government in general, negating the need for internet taxes.

If we put taxes onto iTunes, maybe people will just go back to pirating.
This is bullsmurf.


Right now, as it is, items bought online from another state do not have any taxes put on them.  If I bought from a Texas online vendor, I would pay sales tax, otherwise I would pay no sales tax.  This is good because it helps small business who crop up online still be competitive.


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#21 2008-04-21 4:34 pm

MacZiMiZer
Jack of All, King of None
From: US of A
Registered: 2001-10-25
Posts: 1551

Re: Pols pushing new download sales taxes

Again, it comes down to how much are we really talking about in tax income for each state if they institute this?


8/7/04 Wiz, never forgotten
In loving memory of my Grandmum Shirley.
"Are you the one who keeps tellin' me to beware?  Cause I'll tell you where to be!"
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#22 2008-04-26 10:35 pm

Freezer mac
iPod scroll wheel
From: next to a big cold lake.
Registered: 2001-01-06
Posts: 7370

Re: Pols pushing new download sales taxes

here's an idea... either tax me on my income or what i buy... not both.

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#23 2008-04-26 11:05 pm

MacZiMiZer
Jack of All, King of None
From: US of A
Registered: 2001-10-25
Posts: 1551

Re: Pols pushing new download sales taxes

or make it so no one can amass more than say 5 million a year? or in their lifetime even? (ballpark, in my current living method if I had 500,000 I could live off the interest alone.)

Last edited by MacZiMiZer (2008-04-26 11:05 pm)


8/7/04 Wiz, never forgotten
In loving memory of my Grandmum Shirley.
"Are you the one who keeps tellin' me to beware?  Cause I'll tell you where to be!"
[MA]BlakBantam [MA]PvtCrim Roncanear        -STEAM-    -PSN- PrvtCrim

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#24 2008-04-28 9:36 pm

Tom_N
Member
Registered: 2002-01-24
Posts: 889

Re: Pols pushing new download sales taxes

Wikisource (quoting the United States Constitution) wrote:

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing its inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Control of the Congress.

Last edited by Tom_N (2008-04-28 9:38 pm)

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#25 2008-04-28 9:56 pm

MacZiMiZer
Jack of All, King of None
From: US of A
Registered: 2001-10-25
Posts: 1551

Re: Pols pushing new download sales taxes

heh well the states got away with not enforcing Federal treaties a few months ago shrug


8/7/04 Wiz, never forgotten
In loving memory of my Grandmum Shirley.
"Are you the one who keeps tellin' me to beware?  Cause I'll tell you where to be!"
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