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New York Taxes iPod Downloads

There used to be a common belief that, if something was popular, the government will tax it. That seems to be true as New York state levies a tax on iPod downloads:

“New Yorkers who download music to their iPods are to see the cost rise after the state governor, David Paterson, slapped a 4% tax on the practice as part of an attempt to ease a massive budget crisis.

The charge, which has been nicknamed the iTax, will also cover ebooks and other “digitally delivered entertainment services”…”

link: New York hits iPod users with tax on downloads

Although this may ease the budget burden, it may create other negative consequences. People who download music may tire quickly of supporting the state government and turn to other means of acquiring music. The internet buyer can find ways around being a ‘New York purchaser’.

Catherine Forsythe

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