State sales tax would apply to iTunes downloads and other digital purchases if a bill by Assemblyman Charles Calderon (D-City of Industry) passes.
The bill “doesn’t seek directly to tax music tracks, but instead would require the Board of Equalization to update a 75-year-old law that authorizes sales-tax collections on tangible personal property.”
Digital downloads are currently not considered tangible, but instead “intellectual property.”
Considering our state’s $8 billion deficit, this sounds like a better alternative than closing state parks or making dramatic cuts to education… or does it?
Some nerds at TechDirt looking at the fine print discovered that taxing internet downloads, besides making current purchasers consider cheaper illegal alternatives, may have found an even more interesting result…
If the law starts treating digital goods as tangible goods, will that give people other rights — such as the right to do what they want with the content after purchase?
So, would you be willing to pay an extra 8 cents on a song download to be able to copy and burn that track without fear of a copyright lawsuit?