04-15-2006, 10:29 AM
Quote: Internet shoppers accustomed to tax-free purchases from Apple Computer's iTunes Music Store soon may be in for an unpleasant surprise.
State legislatures and tax officials, eager to find new ways to boost government spending and curb budget shortfalls, are eyeing the burgeoning market for digital downloads as a potentially lucrative source of revenue.
...15 states and the District of Columbia now tax downloads of music, movies and electronic books. Some high-tax states such as California do not levy the same charge on iTunes downloads, but that could soon change.
"More states are beginning to tax downloaded products," said Steve Krantz of the Council on State Taxation... "Some are doing it through specific legislation. Others are doing it through the interpretation of previous law."
full article: http://news.com.com/The+tax+man+cometh+a...tml?tag=nl