New York State Proposing Tax On Downloadables
With a recession going on everyone’s having to find ways to scrimp, save and keep things going including state governments. There are two ways for any governmental body to get a budget back in balance; the first is to cut spending and the second is to raise taxes. David Patterson, the Governor of New York is entertaining an unusual source of revenue.
Patterson is proposing a tax on “digitally delivered entertainment services” which includes music downloads, video games, movie files, pictures, you name it and they’re going to tax it. You’ll be hit twice in some areas as the law would make these products eligibile for both state and local sales taxes.
Given that taxes are already applied in physical stores and the consumer still doesn’t have to pay for the overhead on store rentals, staff salaries, etc. it hopefully won’t upset anyone that much.
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