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Main > Archives > 2009 > April > Mississippi Latest State to Tax Digital Goods, Downloads & Online Orders

Thursday, April 16, 2009

Mississippi Latest State to Tax Digital Goods, Downloads & Online Orders

digital download tax

Budget cuts have hit virtually every state in the United States, and as the respective government leaders search for new sources of tax revenue, your online shopping costs could rise.

Why? Because your online purchases will include a specific state tax. You may recall my post about the iTunes Tax and other city fees proposed by New York Governor David Paterson . Despite Patterson's verbal endorsement, the proposal died last month, despite the fact that New York's government is $15.4 billion in debt. However, other states have implemented the tech tax. Mississippi's will go into effect July 1, while North Carolina,Vermont and Washington contemplate similar courses of action. An article by Stephanie Condon on CNET spelled out the details.


At least 18 states claim they have the authority to tax digital goods, and more are likely to join them.

On March 12, a bill was introduced in the North Carolina general assembly "to modernize the sales and use tax statutes by treating music, movies, books, and computer software that are delivered electronically the same as those that are purchased in a tangible medium."

Minnesota, Washington and Vermont legislators are contemplating a digital goods tax. There are a few leaders in the consumer's corner, including North Dakota's Governor,John Hoeven, who signed a law that forbids the state from taxing online goods. Hoeven told CNET News:

I think it's important we send a message to the world of digital products that this is a state that's favorable to their interests

Enjoy your dollar downloads while they last.Before you know it, you'll be sending more of your money back to your state. Tax reform should, encourage consumer spending, whether its online or in-person.  In my opinion, these taxes will raise the cost of our everyday living and hurt many stores who thrived from the appeal of lower prices.

By Matt O'Hern at 05:52 PM | Comments (0)

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