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Tax on Internet Sales Not Likely to Pass… Again

Wednesday Sep 26, 2007

Assemblyman Charles Calderon of California wants the state to consider imposing a tax on new media downloaded from the internet. He is specifically targeting goods like iTunes which are currently exempt from tax. He claims that the sales tax should apply equally to online and in store purchases.

I think he might have a point.

Please, put away your rotten tomatoes. Don’t hurl them just yet. I don’t think that California will actually implement such a tax. It’s politically dangerous (Republicans in California are already labeling it a “new tax”) and administratively, it could be a nightmare to enforce. The internet is a vast and complicated place when it comes to taxation - which is why many goods are still sold tax free.

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