States taxing "digital goods"

[unixronin]

States have figured out that people are spending money to buy digital “goods”, and naturally they want “their” share.

Including Mississippi, at least 18 states claim they have the authority to collect taxes on digital goods, and more are likely to join them.

On March 12, a bill was introduced in the North Carolina general assembly “to modernize the sales and use tax statutes by treating music, movies, books, and computer software that are delivered electronically the same as those that are purchased in a tangible medium.”

A digital goods tax measure was also introduced in the Minnesota House of Representatives in late March.  The bill could raise the state more than $8.2 million in 2010 through 2013, according to the Minnesota Department of Revenue (PDF).

Comments

[perspicuity.livejournal.com]

or it could cost the state $$$ in terms of overhead when people rebel against it, lawsuits, plain ignore it, or find other ways to get around it.

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[house-pundit.livejournal.com]

It'll raise some money, but not nearly as much as they hope. Geeks will get around it based on principle. Non-geeks will get around it because the geeks find and establish methods that are so convenient.