States Taxing iTunes?

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Economically, things are tight everywhere you look these days and State budgets are feeling the pinch too.  This year, States have seen drastic reductions in collections from income tax (if a person’s income drops, so does their tax), sales tax (people are not buying as much) and property tax.

Well, the Governor of New York is proposing one measure that is sure to get music lovers up in arms: impose a state tax on iTunes and “digitally delivered entertainment services.” Awesome!

Governor Peterson’s proposal still needs the approval of New York State Legislators, but I am sure there are 49 other states paying close attention to the outcome of the iTunes tax bill (or iPod tax, as they are calling it).

So, your $0.99 music download might be going up to $1.06 🙂 .  If bills like that are passed, I bet there will be a marked increase in music and movie file sharing.

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