Wednesday, December 17, 2008
Itunes Tax Headed for New York
New Yorkers may be forced to pay an extra fee for music and and other "digitally delivered entertainment services", thanks to a new state budget.
New York's governor David Paterson defended the iTunes fee as one of the "necessary" moves to shrink New York's $15.4 billion budget deficit. He said:
We're going to have to take some extreme measures.This is where we are. Change is unavoidable, and the proposals I have put forward today begin the difficult process of adapting to a new fiscal reality
New York's long list of fees also hits other areas of entertainment,including movie tickets and sporting events. Some notable revenue increases include: A new, additional 18% sales tax on non-diet soft drinks, eliminating the sales tax exemption on clothing and footwear under $110, imposing a sales tax on cable and satellite TV/Radio and conforming the state sales tax to New York City's practice of taxing personal services, such as barbering, massages, and hair salons, and credit rating services. The New York Daily News conducted an online poll that asked:
Will you still buy iTunes songs if New York State imposes a sales tax on them?
The results: 91% no, 9% yes.
Another poll asked: "Which tax on everyday incomewill hurt you the most?"
Driving fees led with 18%, followed by Soda and Cable TV tied for second at 17%,alcoholic drinks at 14%, internet downloads at 9%, cab rides at 6%, cigars at 3% and sporting events at 1%.
If and when the governor defines what's included in the vague description of "digitally delivered entertainment services "I want to hear how he plans to implement and enforce the the fee for all of the applicable sites. If other states choose to follow a similar model, we could see a notable impact on internet marketing.
By Matt O'Hern at 09:50 AM | Comments (1)