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New York State proposes iPod tax

Want to download tunes to your iPod? You may have to pay a premium—at least in New York Gov. David Paterson, desperate for ways to narrow the projected (and ever-expanding) $15.4-billion budget deficit, yesterday proposed taxing just about anything he could to raise much-needed cash, including digital music downloads.

The so-called iPod tax was among  a long list of 88 new or increased fees that the governor proposed to fill in the gaping money hole. If adopted, which is iffy, consumers would pay a 4 percent sales tax on downloaded music and other "digitally delivered entertainment services," the Associated Press reports.

But New Yorkers' iPods aren't all that will be hit. Among other things targeted for new or hiked taxes: gasoline, taxi rides, cable and satellite TV service, cigars, beer, movie and sports tickets, and health spa visits. Paterson said his fiscal year 2009-10 budget proposal seeks to end a "digital property taxation loophole" by imposing state and local sales tax on purchases of prewritten software, digital audio, audio-visual and text files, digital photographs, games, and other electronically delivered entertainment services. For example, if lawmakers were to okay this version of the budget (which is unlikely), a book, song, CD, or DVD could be subject to sales tax no matter if it was bought at a brick and mortar store or downloaded online.

Image courtesy of Apple

Tags: iPod, New York, Apple, iPhone
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  1. 1. Baldlars 04:46 PM 12/17/08

    And just how does the State fo New York plan on collecting the taxes on downloading. If they plan on "asking" Apple to do their job, theymay get the same answer France got ... okay, we will no longer sell our products in France, or in this case, we will not knowingly allow customers in New York download files.

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  2. 2. Paul of Luca 05:27 PM 12/17/08

    Gov. David Paterson, is about as smart as a sack full of wet rats.

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  3. 3. carterwaid 06:50 PM 12/17/08

    I sell a math game, usually via my website . I collect no sales tax for out of state customers. They are supposed to voluntarily pay a use tax in their respective state. This happens once in a blue moon. Meanwhile I am enjoying the benefits provided by my town, county and state and they are not being compensated. The states have to get together and do something about this. Everybody wants government to provide all kinds of services, but are too cheap to pay for them.

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  4. 4. hotblack 09:42 PM 12/17/08

    Ok, I live in, say, Montana. What did the state of New Friggin York do for me, that I should spend my time, effort, and money collecting taxes for them? New Yorkers have a saying for this It starts with a "Go", and ends with a "Yourself". Apply it, Paterson.

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  5. 5. hotblack 09:46 PM 12/17/08

    ...ok ok, that is a bag of worms, as I can see how far back you could go with that, all the way to the overpopulated polluting hordes created enough demand for steel without which I wouldn't have this camera... all the way to, it provides a few customers.

    However, the expense of my having to hire an accountant specially to run every states taxes because they can't keep their budgets in line is disproportionate. I'd spend more than I'd make.

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  6. 6. Monty 12:38 PM 12/21/08

    What can anyone in NY expect from the democrats.. their tax and spend legacy is the reason why any sensible person has long ago left the tax and spend capital of the world. Patterson...can you hear your father's laughing..

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  7. 7. carterwaid 04:26 PM 12/21/08

    Since 1950 there have been 14.7 years of negative GNP/GDP growth and only 1.4 years have been under a Democratic president. Furthermore, except for Ike, the exponential growth rate in the national debt has been far greater in Republican administrations than in Democratic as well as the unemployment rate. RayGun was an economic disaster who nearly tripled the national debt in his 8 years. The Republicans are the poster girls of the credit card economy.

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