Rip, Download, Tax
Filed in archive Government on April 18, 2006
State government now wants a piece of the iTunes action. 15 states currently tax digital downloads, including Texas, the largest. The states reason that the files are personal property and so should be treated like physical CDs. However that is contrary to record industry position that unlike a CD you don't own digital music, you can only license it on a restricted basis. There is no word yet on when the taxman will be coming for those illegitimate downloads you jacked on a buddy's iPod or P2P.
Permalink: Rip, Download, Tax
Tags: music download
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Response from:
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(05/31/07 3:19pm)
Frequent online shoppers or digital downloaders might be interested in knowing that states are looking for ways to enforce tax payment. New York state, for example, has added a line to its tax form for residents to calculate what they owe on any out-of-state purchases, including internet and mail-order purchases. Residents who leave this line blank or indicate they owe nothing had better hope they don’t get audited. The burden of proof is on them, and they will need to produce credit card statements and bank statements to back up their claims. In other words, consumers need to keep track of every dollar spent in other states.
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