NY governor drops proposed 'iTunes tax'

In December, New York Governor David Paterson proposed, among other taxes, a 4 percent tax on any legally purchased music and movie downloads. All 99 cent downloads from the iTunes store would have immediately cost NY buyers $1.03 if the tax had passed.

New York would have also become only the second state to impose a tax on digital downloads. New Jersey currently has an "iTunes Tax."

Paterson has announced today that the government will drop the proposed digital download taxes even though the current NYC deficit is believed to be over $13 billion USD. Aside from the iTunes tax, Governor Paterson wanted to tax over 100 other entities, including an 18 percent tax on soda, a 4 percent tax on gym memberships, and a 5 percent tax on movie tickets but it appears those taxes will be dropped as well, as federal bailout should help cover any money the taxes would have recovered anyways.

The proposals may be brought up again however if the deficit increases, noted the government.

Written by: Andre Yoskowitz @ 13 Mar 2009 16:51

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3 comments

ThePastor

How are these taxes not illegal? Is it not illegal to charge a tax on another state?
The only state that should be able to tax Itunes is whatever state Apple is in.
Originally posted by Article 1 of the US constitution: No Tax or Duty shall be laid on Articles exported from any State.

13.3.2009 17:24 #1

BTFan

Quote:How are these taxes not illegal? Is it not illegal to charge a tax on another state?
The only state that should be able to tax Itunes is whatever state Apple is in.
Originally posted by Article 1 of the US constitution: No Tax or Duty shall be laid on Articles exported from any State.iTunes isn't exported, it's digital, travels using the web.

13.3.2009 22:12 #2

putaro05

what a crock of bs.. let's just tax everything as if there aren't enough already...

7.4.2009 13:28 #3

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