State May Try to Tax iPod Songs
Something tells me lawmakers might actually read this year's so-called Technical Corrections bill. The Revenue Department legislation, which makes usually arcane changes to tax law, typically rolls through the legislature virtually unnoticed in the frantic, final hours of each session. But this year, even before the administration has finished writing the bill, alarms are sounding.
"A preliminary draft includes proposed changes with significant potential impact on businesses in Tennessee," an email from the lobbyists at Waller Lansden warns. The most controversial proposal doesn't only impact businesses. It would tax the songs on your iPod.
The Republican Party is already on the case. “Most states do not tax digitally-delivered products,” state GOP flack Bill Hobbs says. “Tennessee shouldn’t either and state government’s current fiscal crisis should not be used by the Bredesen administration as an excuse to hit the people of Tennessee with a new tax that could cost them tens or even hundreds of millions of dollars.”
Update: As commenters are pointing out, iTunes already are taxed. The Revenue Department says its proposal is really a technical correction.
Comments
If it makes them feel better, tax away. There is no practical way to enforce it on the retail end, considering federal law prohibits such taxation, so it would likely be a consumer sales tax. How many of you paid the taxes on your Amazon orders?
Posted 04/24/2008 at 10:41:31 AMPLEASE. If it is revenue you want, for pity's sake, tax something like WOW or EVERQUEST or one of those other MMRPG. I can think of few things that are less productive than spending 2 + hours in an activity that requires a computer, electricity, air-conditioning, a phone line or high-speed connection, etc...and doesn't feed you, wash your clothes, put gas in the car, pay the bills, provide you with education, personal relationships (I'm talking FACE TO FACE), or create personal, spiritual, or emotional development.
Posted 04/24/2008 at 01:27:46 PMreally?
really?
what a thoughtful, reasonable, well thought-out, wholly appropriate and completely on-topic response.
Posted 04/24/2008 at 03:19:30 PMAnyone who purchases songs through iTunes is already charged TN sales taxes. Check your receipts. Bill Hobbs is incorrect.
Posted 04/24/2008 at 03:48:23 PMNice job passing along GOP press releases though Jeff. No sense picking up the phone and asking questions...might get mistaken for a journalist.
Posted 04/25/2008 at 10:31:16 AM