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Wisconsin Gov. Proposes "iPod Tax" for Online Digital Music Sales

Authored by Mark Hefflinger on March 11, 2005 - 3:51am.
San Francisco -- Wisconsin Gov. Jim Doyle has proposed that the state begin collecting taxes on digital music and other content sold online, an idea that Republican lawmakers in the state have said they will block, CNET News.com reported. Already in South Dakota and Utah, consumers who do not voluntarily pay a couple extra cents in "use tax" above the $0.99 cost of a digital music download are technically breaking the law. Such laws usually only require online retailers like Apple to collect the tax if they have a physical presence in the state of purchase. In practice, neither South Dakota nor Utah pursue individuals for evading their use taxes. "It's an issue of tax equity...If you go into a Main Street business and purchase a CD, you are paying tax," Wisconsin Department of Revenue spokeswoman Jessica Iverson told News.com. "Even if it does pass, it's unlikely that there would be much compliance," Wisconsin state Rep. Scott Jensen, who is working to defeat the proposal, told News.com.
tags: Internet | iPod Tax | Wisconsin Gov | Online Digital Music Sales |