News Clip
April 15, 2008, Cnet

CNet article on the "iTunes Tax"

A growing number of state politicians are proposing new laws to levy taxes on digital downloads, including music, video, and books, as a way to remedy budget pains. ... 

Making matters more complicated is that not all states have statutes explicitly stating their position on taxation of digital downloads.

"If a state wants to start taxing a product or service not previously taxed, they've got to enact new legislation, such as the Maryland computer services tax that was just repealed," said Steve DelBianco, executive director of NetChoice, which represents e-commerce companies like eBay and Yahoo.

"But many of these states are hiding behind tax administrators who are anxious to create new taxes on so-called digital equivalents."

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