
Bad news for Internet shoppers. They will not be able to tax-free purchase from Apple Computer’s iTunes Music Store anymore. It seems like the State legislatures and tax officials are doing all they can to transform market for digital downloads as a potentially lucrative source of revenue. Already 15 states plus the District of Columbia are now paying taxes for music, movies and electronic books downloads, according a CNET News.com analysis.
Steve Krantz of the Council on State Taxation says that more states are beginning to tax downloaded products through specific legislation or through the interpretation of previous law, of course this means that more Americans will be obligated to pay more every April 15. The reason? Digital downloads’s great success. For example, concerning music downloads, they grew from $400 million in 2004 to $1.1 billion worldwide in 2005, from $400 million to $1.1 billion worldwide, according to the International Federation of the Phonographic Industry.

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