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New York state may begin taxing music downloads

The Taxman
New York, the state that brought us taxes on items bought over the internet is at it again. This time governor David Paterson is considering a 4% tax on music and other digital media downloads.

To be fair, times are tight and Paterson is also proposing raising taxes on soda, cable and satellite TV, gas, cigars, beer, and movie and sports tickets in order to balance the state budget. But at a time when residents finances are at least as tight as the state's, I imagine these proposals won't be very popular in New York.

Amazon, Overstock.com and other retailers are already fighting New York's internet sales tax in court. Something tells me Amazon and other companies that sell digital music and movies to New York citizens aren't going to take the new tax proposal sitting down.

Tags: amazon, digital-media, ipod-tax, new-york, news, overstock, tax, taxes

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