Version: 2008

March 10, 2005 12:21 PM PST

'iPod tax' planned for music downloads?

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on these songs, or on other digital download services, are in the category of tax scofflaws.

A representative for South Dakota's Department of Revenue said that state's sales tax laws already apply to digital downloads. In Utah, too, iTunes shoppers who aren't paying tax aren't following the rules.

"It works like anything else that's from mail order or a magazine," said Scott Smith, deputy director of the auditing division of Utah's State Tax Commission.

"It's an issue of tax equity...If you go into a Main Street business and purchase a CD, you are paying tax."
--Jessica Iverson, spokeswoman, Wisconsin Department of Revenue

In practice, neither state pursues individual consumers for taxes that would amount to just a few dollars. South Dakota does have a compliance program in place that pursues businesses that make large purchases online, such as antivirus software, however.

Other states, such as California, say digital downloads are simply not taxed.

The issue may change over time as a group of states called the Streamlined Sales Tax Project extend their work to digital goods. Wisconsin policy-makers say their proposal comes out of discussions in that 20-state group, although it has not yet adopted a final policy on digital downloads.

Wisconsin state Rep. Scott Jensen, a key member of the state Assembly's Finance Committee, said he'll work to kill the proposed tax on downloads, however.

"Even if it does pass, it's unlikely that there would be much compliance," Jensen said. "But I think it is unlikely that the governor's proposal for the iPod tax will make it though the Legislature."

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Don't these people ever stop?
by bobby_brady March 10, 2005 12:50 PM PST
It's never ending! Government will also try and raise taxes, no matter what!
Reply to this comment
Guess What
by System Tyrant March 10, 2005 1:05 PM PST
They will get their way too. I would be willing to bet that within a year they will get their taxes.

I am not opposed to paying taxes, but I wan't to know exactly when and where my taxes go. I want an Itemized list of everything my money goes for. I also think that any pay incresses that state and federal officials get should be voted on by the people not by other reps. To clear it up when you run and win an office you should be able to go to the bathroom without approval from the people.

Yeah I know that's stupid. I really don't want to know when and why they are going to the bathroom.
Taxes, Taxes EVERYWHERE
by March 10, 2005 1:27 PM PST
From your phone to the tires on your car, the public is being
taxed to death.

The Beatles
Taxman

"Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman

Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.

Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman

Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me."
Reply to this comment
I'm the taxman
by John Kuzak June 1, 2007 5:58 PM PDT
http://www.analogstereo.com/rover_45_owners_manual.htm
Avoid Taxes
by bradfriedrich March 10, 2005 1:43 PM PST
Simply download from an Australian site....
Reply to this comment
Yes..
by lewissalem March 10, 2005 1:47 PM PST
...there are no borders online. Good luck with collecting tax for music from me. The 37% of my pay isn't enough.
Unfair and Based Entirely on Greed
by Thomas, David March 10, 2005 3:16 PM PST
Taxes are collected, not for the SAKE of collecting taxes, but are
collected because they impact an infrastructure that has a cost
to maintain.

Now before you think you can build an argument about on-line
sales affecting infrastructure, we are talking about labor and
materials. Any other argument would be based on intangibles
and would be complete and utter ********.

Sales taxes are collected on goods sold in a state because the
transportation system is afffected and the state must maintain
the cost of roads. Merchants pay taxes because they have a
similar affect on their surroundings. This is all reasonable. I use
your streets, police, etc. The governing body has to have a
means to pay for it.

Taxing music sales, simply because it is a successful enterprise,
is pure, un-mitigated greed. The states are not affected. They
just want the money. These proposal earn the utter loathing of
the population they profess to serve.
Reply to this comment
It's not just greed. Politicians want to use your money to buy votes
by lingsun March 10, 2005 3:35 PM PST
It's not just greed. Politicians want to use your money to buy votes.
Taxes wouldn't be so bad...
by Bill Dautrive March 10, 2005 7:07 PM PST
..if politicians spent is properly and intelligently.

In nearly every situation, tax money is wasted.

Perhaps the government needs to slim down and spend wisely before asking us for more money.
The lack of sales taxes helps offset the cost of shipping (if applicable)
by lingsun March 10, 2005 3:34 PM PST
Politicians always talk about how online purchases that are tax free have some type of unfair advantage over brick and mortar stores. But the lack of sales tax helps offset the cost of shipping of tangible items (not digital downloads, obviously).
Reply to this comment
lack of sales tax helps
by John Kuzak June 1, 2007 5:57 PM PDT
http://www.analogstereo.com/smart_fortwo_owners_manual.htm
What do you expect....
by March 10, 2005 4:09 PM PST
What do you expect from an administration with the IQ of a zit, that spends, spends and spends some more and then tells lies to go to war to spend even more.

Clinton may have liked getting blow jobs in the oval office but at least he didn't run their country in to the toilet. Bush and all of his hired idiots are doing a good job with the toilet handle and plunger. Yes, idiot American's voted the moron back in to office.

Robert
Reply to this comment
I expect......
by br77575 March 11, 2005 4:51 AM PST
I expect your response to be about a proposed tax on iPod, not your political opinion of our presidents. If you insist on criticizing a political party, please note that the proposal is being made by Democratic Governor Jim Doyle of Wisconsin. Also notice that legislators in Wisconsin are mobilizing AGAINST the proposal, not for it. Those against it are key Republicans in the GOP-dominated legislature, who say they will block the proposal.

BTW, idiot American's voted the prior moron back in to office too, so what else is new?
View reply
Too many C(r)ooks Spoiling the Broth
by j3st3r March 10, 2005 5:02 PM PST
Australian consumption tax is applied and collected by the Federal Government and the receipts divided between the staes and territories as per GST legislation.
Apart from making the level of tax identical from state to state it also allows for the advertised or "sticker" price to be what is paid at the checkout. None of this "$5.98 plus tax, that will be $25.30 Thanks"
The Australian system may not be perfect but it's seems far simpler than each state having to chance their funds all over the country.
Reply to this comment
What Happened to "Smaller" Government?
by March 10, 2005 6:25 PM PST
Every other article that gets posted to Cnet these days is about bigger and bigger and bigger government. The Republicans promised smaller government, but they're doing their level best to tax and spend in their own way. I do not trust any of these politicians one iota.

This is all getting way out of control. Crackdown on blogs, tax digital downloads, outlaw P2P, put black boxes in cars, regulate technology innovation, regulate paid cable and satellite programs the same as boradcast stations, control content on DVD's, and this was all in the past week!

Where does it stop?
Reply to this comment
Poletic
by System Tyrant March 10, 2005 6:51 PM PST
ALL polititians are for the most part idiots. They can be book smart and well versed, but like anybody who doesn't have to work for a living they haven't a clue. I suspect at the end of the day most of them go to bed feeling like they have done some good. Maybe they have. In my opinion there is nothing wrong with taxes. If you take them away America will go to crap real fast. My problem is thess people telling me they can do what they want with my money and they don't have to anwser to me. Well guess what, yes they do.

People complain about Bush being back in office. Well, this year we got screwed either way. Kerry doesn't know what it's like to have to work for a living. He would have been just as bad as Bush just in a different way. A good question is how long does America have before it folds in on itself because Capitilism and Polititians cause the economy to become so unstable that it crashes like Russia. We are the majority. If you don't like the way YOUR government is run then change it. Make your voice loud. Take them to court, take it to the steps, and take it to the poles.

Our fore fathers had to fight for America and we Americans are going to have to fight to keep America. I don't advicate violence I advicate having a voice and using it.
View all 2 replies
Isn't there already a tax?
by u2mr2os2 March 11, 2005 7:41 AM PST
As I recall, Apple charges tax for everything I purchace from them, including songs from the music store. Granted, I have not researched into whether this includes tax for my state, and of course you have to trust that they will send the tax collected to the state. I also don't see it amounting to much given that each song is only $0.99 anyway.
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