Switched has a new home! Huffpost Tech.

Click here to visit the new home of Switched!

Hot on HuffPost Tech:

See More Stories
AOL Tech

iTunes Tax Coming for Californians?

by Tim Stevens on April 9, 2008 at 08:14 PM

iTunes Tax Coming for Californians?

The blissfully tax-free nature online music shopping may be coming to an end. Buying virtual goods such as MP3s has been pretty much tax-free ever since the iTunes store launched in 2002, even though various money-hungry politicians around the country have been itching to levy Internet specific taxes for just as long. The latest is Democratic Assemblyman Charles Calderon from City of Industry, California, who wants to start applying a sales tax of 8.25 to 8.75 percent on digital downloads in an effort to remove the state's $8 billion budget deficit.

Calderon wants to update a 75-year-old law that indicates taxes must be applied to "tangible goods." Movies and music for download have so far been exempt from this tax, since users can't really touch or feel them. You can, however, see and hear them when played on a computer, which is good enough for Calderon. By also applying the tax to purchases of online pornography, Caleron believes he can increase state tax revenue by $500 million annually (still leaving $7.5 billion to go).

However, don't fret just yet, West Coast downloaders: Love 'em or leave 'em, the Republicans in California have your back. They are opposing this measure and are expected to block it from passing, meaning your $.99 downloads will stay just that -- at least for now.

From Mercury News

Related Links:

Tags: breaking news, BreakingNews, download, iTunes, mp3, tax

Comments

3

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

HuffPost AOL Social News Most Popular