iTunes Surtaxes
by Erica Sadun
According to CNet News.com, state politicians around the US are eyeing new digital music and movie taxes to boost local revenues. I already pay nearly 8% sales tax on my iTunes Music Store purchases.
New Jersey Gov. Jon Corzine, a Democrat, proposed in his budget...that "downloaded music and videos" be taxed starting Oct. 1. The state tax agency expects legislation to be introduced in June.
MacNN reports that Apple is considering moving their UK operations to one of the Channel Islands in order to be able to sell to British customers while avoiding the approximately 18% value added tax (VAT).
5 Comments
| qka 2006-04-14 11:29:01 |
If moving to the Channel Islands works in the UK, maybe Apple should move their US operations to there too, or to New Hampshire or another US state without sales taxes. With the Internet, it almost doesn't matter where you are. |
| Erica Sadun 2006-04-14 11:33:09 |
I believe the idea goes like this: If there's an Apple Store in your US city or state, you're liable for taxes regardless of where the corporate headquarters are located. |
| Rl 2006-04-14 17:15:28 |
But since you're not buying the music from the Apple Store, you're buying it from the iTunes Music Store, and you *can't* buy music at the Apple Store, I think it'd only count what state the iTMS is based in. (IE, if iTMS was based in a state without sales tax, and since you're connecting to them, and performing the transaction 'there', you shouldn't have to pay.)
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| Erica Sadun 2006-04-14 17:21:08 |
I'm pretty sure that the following states tax music downloads: Alabama, Arizona, Colorado, Connecticut, Hawaii, Idaho, Indiana, Louisiana, Maine, New Mexico, North Dakota, South Dakota, Tennessee, Texas, Utah and Washington.
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| JulesLt 2006-04-15 08:24:15 |
I thought the Channel Island thing had been debunked?
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