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Digital downloads get state sales tax

Those 99-cent music downloads will see a bit of a price jump later this year once a state "digital products" tax goes into effect.

[Wisconsin] Gov. Jim Doyle approved imposing a 5 percent sales tax on a number of digital goods - including music, ringtone and video game downloads - Feb. 19 as part of a bill aimed at narrowing a $6 billion dollar state budget deficit. The new tax will go into effect Oct. 1.

"One of the problems we have with the tax code is that it doesn't grow with the economy," said state Sen. Kathleen Vinehout (D-Alma). "Right now we're moving into a whole new world of products that are transmitted over the Internet.

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SeanScythe3575d ago

what a dic k, this guy needs to be recalled/impeached

Myst3575d ago

Seems like this might give people who pirate things more incentive to do so if they haven't done it a lot in the past. Yet I wonder taxes are usually used toward something such as city taxes primarily going to fixing roads, upkeep of things, etc. I wonder what this guy has in mind for it...

Also, I hope this is really going to suck for those who are buying things for Rock Band 2 on PSN. As I noticed their was a tax of something cents on my downloadable songs. Being that another tax is going to be placed on it, I wonder if people might opt out. Since for the original price (1.99 usually) you can get the song itself.

I see what the senator is trying to do, I respect it (Depending on whether the money goes) but being that their are already taxes on various mediums already why would they slap another tax on it, pretty soon downloadable content may very well reach the price of 10.00 if this keeps up :) (I know it may not be possible but who knows!)