Iowa Senate Passes “iPod Tax”
21 04 2007
The state of Iowa will now be imposing taxes for music downloads via the Internet. Dubbed as “iPod tax” it encompasses intellectual products such as songs, ring tones, software, audio books and other electronic products. There’s one catch however. As there is no way the Iowa government can watch online sales, it would strictly be an honor system. Online customers based in Iowa will pay the iPod tax voluntarily. The iPod tax could give the state $4.8 million annually. “This tax is impractical. It’s unenforceable. And it’s highly unpopular,” Republican Sen. Jeff Angelo said about the iPod tax. The bill will be passed to the House. Reasons given for such a tax is that online consumers should pay just like non-online ones. I guess Iowans will get to prove how unpopular an iPod tax really is when revenues turn out to be less than what Zune Marketplace is raking in these days.
[via siouxcityjournal]
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