New York Governor Proposes Digital Download Tax

Posted 17th Dec 2008 11:34 PM by Medievaldragon

New York Governor David Paterson has released his 2009 budget proposal to face the economic recession that has hit the United States nation. Curiously, among his ideas is to impose a tax on all music (iPhone / Zune) digital downloads, and other entertainment downloads.

Games distributed online as a digital download will be affected by this legislation too, according to Gamespot. That might mean that New Yorkers who buy World of Warcraft, Warcraft III, Diablo II, Starcraft: Brood War and any upcoming Blizzard games that are to be distributed digitally via the Blizzard Store might be hit by state and local sales taxes.

The thing to question is whether patches, which are entertainment digital downloads, are taxable. Most likely not, but since the government wants to squeeze as much juice even from supermarket plastic bags, one has to wonder to what lengths they may go.

According to the proposal, the sale of all "digitally delivered entertainment services" will be subject to state and local sales taxes. These services include "prewritten software, digital audio, audio-visual and text files, digital photographs, [and] games." (Emphasis added.) The budgetary measure also notes that "a book, song, album, or movie would be subject to sales tax no matter if it was bought at a brick and mortar store or downloaded online."



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Mikeztarp
Posted 18, Dec 2008 12:17 AM
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In the famous words of Nelson Muntz: ha, ha! Too bad for you, americans! raspberry
Well, I may laugh, but even with these taxes, it will still be cheaper than in Europe…

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Shnissigah
Posted 18, Dec 2008 12:39 AM
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eh, i’ve never liked new york… except the mafia… but if they start taxing anything that’s digitally downloaded, then you can say g’bye to freeware, boys and girls, NY’s done it again…

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dgrampa
Posted 18, Dec 2008 01:21 AM
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AFAIK you can’t tax something that is free, so they would not be able to tax free patches.

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Medievaldragon
Posted 18, Dec 2008 01:43 AM
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Hey plastic bags at supermarkets are free too.  Yet they are imposing the tax.

Within the past two weeks, they have found things to tax to cash some money for the state budget. Even soda will get a tax raise. I’m a New Yorker. =)

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nobbie
Posted 18, Dec 2008 03:08 AM
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Yeah, so they can blow the billions of tax dollars into the arses of Mr. and Mrs. Rich after the next financial crisis.

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waytofailself
Posted 18, Dec 2008 03:57 AM
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Um…yes you can tax things that are otherwise “free.” You receive a gift? A payment from a trust fund? Payment from someone’s estate? You win something on a gameshow? Guess what, YOU’RE GOING TO GET TAXED FOR IT.  Heck, your income is taxed (in most states).

Federally, congress has the constitutional authority to establish taxes as it chooses, and every state (I can’t think of any exceptions) has similar provisions in their constitutions.  The state could tax you for the height of the grass in your front yard or for the distance you drive.  All it takes is a passage of legislation to put a tax on internet usage.

This is a very bad sign and I hope other states don’t go “WOAH THAT"S A FREAKING GREAT IDEAR!”

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kendallwow
Posted 18, Dec 2008 04:10 AM
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I live in New York, This guy is kind of a jerk. We have a quite a few of Indian reservations up here that sell cigarettes at a very low price ‘cause as of right now they don’t need to include state or federal taxes. They other day he also proposed a bill to start forcing them to charge taxes on them. This is a big issue and could create allot of problems up here.

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Xeodus
Posted 18, Dec 2008 10:23 AM
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Plastic bags - I guess they’re just trying to discourage people from using and providing them. Not wanting to sound like an eco-warrior (as I’m not) but you really don’t need plastic bags at all, they’re a massive waste of time and resources.

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Mazhulsage
Posted 18, Dec 2008 10:15 PM
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Funny that they keep taking so many taxes out of us, and yet I’ve yet to see them actually put our taxes to their TRUE use, fixing roads and putting money into the schools and all of that stuff, I mean, sure, they do it a little… Honestly, when they get 7.75 cents out of every dollar in Nevada and they can’t handle fixing a HUGE ripped up part in a road (That’s been there for over 10 years) I don’t see why I’m paying taxes at all. Lots of things WAY more important than a road, but that’s the point, something as simple as that not being fixed is ridiculous.

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WatcherZero
Posted 18, Dec 2008 11:19 PM
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This wont get past the retail lobby, they would have to implement a stystem that tracked and charged you 1 of 50 diffrent possible rates.

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