New York Proposes Electronic IPOD Download Tax

In what one industry trade group is calling a
“stupid” idea, New York Gov. David Patterson
recently announced this tax, dubbed “the iPod tax”
or iTax” by the media, as one of 137 proposed tax
increases in an attempt to allow the state to recover from a
$15.4 billion short fall.

According to the state budget website, “with the passage
of this bill, a book, song, album, or movie would be subject to
sales tax no matter if it was bought at a brick and mortar store
or downloaded online.” This also includes downloaded
photos, games, software, and movies.

Several consumer advocacy groups have spoken out against this
proposed tax, citing, among other complaints, the fact that
consumers who download media rather than purchase it are
reducing the overall carbon footprint and should not be
penalized for doing so.

If this tax is passed, New York will join several other states,
including Louisiana, New Jersey, South Dakota, Tennessee, Texas,
Washington, and Hawaii, where similar taxes are imposed on
electronic downloads.