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More on the digital download tax
Posted at 3:17 PM on March 31, 2009
by Tom Scheck
The Minnesota Budget Project posted an interesting item on taxing music, video and other downloads. For those not closely watching the debate over Minnesota tax policy, DFL Sen. Tom Bakk suggested that he is considering a plan that would tax digital downloads.
The post answers an interesting question that has been circulating around the Capitol: Can the state tax digital downloads? The answer is yes:
"The biggest sellers of downloaded music - Itunes and Wal-Mart - have said they are willing to collect state sales tax because they in fact have a physical presence in most states. Instead, the issue is simply that digital downloads are not in the definition of goods subject to the state sales tax. The Legislature certainly has the power to change that."
What isn't posted is that Gov. Pawlenty says he has no appetite to agree to this tax or any other tax.
As many as 17 states tax digital downloads.
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