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NY governor drops proposed 'iTunes tax'

13 March 2009 16:51 by Andre "DVDBack23" Yoskowitz | 3 comments

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.

Permalink to this article | Topic: Lawsuits & Legislation

Apple adds HD movies to iTunes (20 March 2009)

The new Apple iPod Shuffle talks to you (11 March 2009)

Spain set to start 'iPod Tax' July 1st (24 June 2008)

Japan to start iPod tax, says report (7 May 2008)

Proposed 'iPod Tax' struck down again in Canada (13 January 2008)

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ThePastor (Junior Member) 13 March 2009 17:24
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. [ + quote] This message has been edited since posting. Last time this message was edited on 13 March 2009 17:36
BTFan (Senior Member) 13 March 2009 22:12
*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. [ + quote]
putaro05 (Junior Member) 7 April 2009 13:28
what a crock of bs.. let's just tax everything as if there aren't enough already... [ + quote]