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State Taxes Coming to iTunes and Other Digital Downloads

I haven’t purchased anything personally from the iTunes Music Store, but I have purchased DLC from the PlayStation Store and I had to pay tax on that purchase. I hear that it’s much the same for the Wii Virtual Console, so today’s news about iTunes doesn’t surprise me all that much. In fact, it surprises me more that this hasn’t already happened.

Up until now, a lot of people have been able to make digital download purchases online without having to pay taxes. That is about to change. The next time that you may a digital purchase through Apple iTunes, Amazon Unbox, “or computer software from anywhere”, the purchase price may be taxed at the federal and state level.

Not every state is on board with this movement just yet, but it’s only a matter of time before they all realize how much of a revenue source this could be. Retail e-commerce sales are estimated to exceed $130 billion a year.

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About Michael Kwan

A freelance writer and tech geek from Vancouver. Find me at michaelkwan.com and follow me on Twitter @michaelkwan.

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