Blog Post

Taxing Downloads: 15 U.S. States Now Do It

A story/analysis shows that 15 states and the District of Columbia now tax downloads of music, movies and electronic books. Some high-tax states such as California do not levy the same charge on online downloads, but that could also change soon.
These taxing states typically say taxing digital-media downloads is a matter of treating physical shopping and online purchases the same. Taxpayer advocates don’t accept that premise, saying it represents an unfair addition of tax laws…the story also goes into other intricacies and runarounds that may allow other states to tax digital downloads as well.