Connecticut Considers Taxing Digital Downloads

[cereal killer]

The cash strapped state of Connecticut wants to levy a tax against your digital downloads. This will effect your downloads of music, E-books, and (hang onto your computer chairs)... smartphone applications. A bill introduced by the General Assembly's Finance, Revenue and Bonding Committee, would have consumers pay the state's 6.35 percent sales tax on any electronic transfer of a digital product. Rep. Patricia Widlitz, the committee's co-chairwoman, said the bill is intended to level the playing field for the state's bricks-and-mortar retailers. Widlitz goes on to say:

We're focusing on jobs and businesses. What we want to do is give our retailers the chance to compete with online service. We understand that this is how people, especially younger people, shop online.

About 25 states have begun taxing digital downloads, and according to attorney Kelly Miller "the taxation of electronic goods and services is probably the fastest-growing new tax that's been imposed in the last five years." There is some good news in all of this though. Connecticut's Gov. Dannel P. Malloy does not support the proposed legislation. Andrew Doba, Malloy's spokesman, said "We are not supporting any tax increases at this time." If you live in Connecticut and don't want to pay the additional 6.35% sales tax on top of your Beautiful Widgets purchase, head on down to the public hearing this Friday 10am at the Legislative Office Building in Hartford, Room 2E to voice your opinions.

Sound off with your comments and opinions.

Source: Hartford Courant

[IIGood]

Maryland just recently proposed this as well.

If governments could manage their money a little more wisely, additional taxing of residents wouldn't be necessary.

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[skennelly]

I would have no problem paying that tax if they showed where they were making cuts to their budget. I do have a problem with the idea of "we don't have enough money, let's tax something."

[silverfang77]

Is technophobia a prerequisite for being a legislator?

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[Kboss375]

Even more of a reason to move out of this state lol

[npro1464]

Why shouldn't digital downloads be taxed? That's the problem with this country, no one wants to pay taxes but we want all the benefits a government provides.

The proposed tax might cost you $.14 extra on your stupid app, it really won't kill you. Especially considering most apps are free in Android anyway.

[JoeyJ]

I guess Ohio already does this cause I bought some 49 cent apps and got taxed. Not really a big deal to me

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[Chizzele]

Why shouldn't digital downloads be taxed? That's the problem with this country, no one wants to pay taxes but we want all the benefits a government provides.

The proposed tax might cost you $.14 extra on your stupid app, it really won't kill you. Especially considering most apps are free in Android anyway.

The reason they should not tax it is because they are already taxing your data service. next they will tax you for surfing regular websites... Or maybe streaming netflix. Sales tax is a state tax not federal. They supposed to only tax on purchases made with local vendors, buying an app might from a vendor in another country..

[RETG]

When I purchase a e-book from B&N I get charged sales tax for the state I live in, since that is where my account is setup.
My question on states charging download sales taxes on apps is how do they determine who pays the tax. My phone is registered in Troy MI, but my legal residence is 1500 miles west; I have never changed my phone number. So, for an example, if MI passes such a tax, would I pay since my area code is 248?

On the tax issue. I say stop raising taxes until the politicians can stop trying to redistribute my tax money to those too damn lazy to work...

[jerkwad]

The reason they should not tax it is because they are already taxing your data service. next they will tax you for surfing regular websites... Or maybe streaming netflix. Sales tax is a state tax not federal. They supposed to only tax on purchases made with local vendors, buying an app might from a vendor in another country..

There is nothing correct in your statement.

1. Taxing your data and your app is no different than paying tax on your gas and your car and your paycheck to go to the store to buy the product you want and then pay tax on that too! They just removed the whole "need to drive somewhere" part. Otherwise it is the same thing.

2. This IS about a STATE (Connecticut) raising taxes, NOT the Federal government. States lose TONS of money by those that purchase things online and don't get taxed. This reinforces stores moving to an online only format and (worse) moving out of the country/state to avoid specific tax laws. I'm not a tax expert, but obviously this isn't good for commerce within the US, takes away jobs (that would be used for those employed by the stores), etc. I understand the issue with purchasing apps "across state lines" but it seems everyone wants to complain instead of offer solutions for states to handle commerce within their own state. A simple "flat tax" across all states would be good enough...

3. Are we all really complaining about $0.06 per $0.99 app?!

4. I'm not pro-raising taxes, but it seems everyone wants something for nothing these days............