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New York Gov'nor proposes: tax DLC for consoles, iPod |
Listed in: Tags: New York
What's this? More taxes?!? More importantly, in downloadable content?!? Come. On. Apparently, it's gonna suck to be a New Yorker because of this. Included in the state's proposed budget is the suggestion that DLC, in both the iPod and video
games, be taxed.Yep, they don't just want to control your purchase of the game, they also want to make sure you give a little something-something back to the government every time you play. Hey, there is tax in entertainment, but no entertainment in tax, I'd like to say.
Anyway, the reason behind this brilliant proposition is because, well, the economy sucks. So, Gov. David Paterson has responded to the situation by proposing a budget that would result to layoffs, service cutbacks and new taxes such as this.
The New York Daily News reports:
Gov. Paterson's proposed US$ 121 billion budget hits New Yorkers in their iPods - and nickels-and-dimes them in lots of other places, too. Trying to close a US$ 15.4 billion budget gap, Paterson called for 88 new fees and a host of other taxes, including an "iPod tax" that taxes the sale of downloaded music and other "digitally delivered entertainment services."
Here's the pertinent clause in said budget document:
Close Digital Property Taxation Loophole. Imposes state and local sales tax on purchases of prewritten software, digital audio, audio-visual and text files, digital photographs, games, and other electronically delivered entertainment services to achieve tax parity. For example, with the passage of this bill, a book, song, album, or movie would be subject to sales tax no matter if it was bought at a brick and mortar store or downloaded online.
So to those complaining of pricey DLCs, looks like there's no way to turn but for you to enjoy this while it's free. You never know, if this turns out successful for the Big Apple, you just might find your state adopting this policy as well.
Related Articles:
- Video game legislation proposal: videogame ID checks
- Pennsylvania task force releases report to fight against video game legislation
- Ted Price says video game legislation "has no place in America"
Via New York Proposed Budget pdf
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Comments
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Maybe they should average out the amount of breaths the average person takes and start charging a monthy air tax as well....
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The PS Store already has taxes for NY, so what now? They want more?
This is so like prince John now all we need is an e-Robin Hood.
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The reason these downloads are tax-free now is because of a loop-hole, and one that doesn't make legal sense. Can you show me the difference between buying a CD at a store or downloading it online? If one is taxed, the other should be too. I wouldn't expect the blog to explain that side of the story though.
Just be proud that you NY gamers get to contributed to building roads and keeping the streets safe. You might not see the benefits of the spending though, because you will be too busy playing all that DLC you will still download :).
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These downloads *AREN'T* tax-free now. We're already paying sales tax on them.
This is charging an *ADDITIONAL* tax on TOP of the sales tax.
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This is double taxation!
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Maybe you should get your news from sources other than QJ. Sales tax IS NOT currently charged on the sales of songs. That $0.99 charge does not include a hidden sales tax charge, go check your receipt. Again, I am not advocating that taxes are good. Just saying that if you tax me when I go shop at a CD store, then its only fair to the CD store that I be taxed when buying online also.
Sales tax in parts of NY go as high as 8 and a quarter, just take comfort that they are only charging 4% sales tax on digital goods. Here in Texas, we would be paying 8.25%. Twice as much as you are complaining about.
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Regardless I am against it. I believe that there should be no tax on digital media.
However-- I think a good option to go would be to tax food. That would mean even people who abuse the system(not the down on their luck ones.. but people who actually abuse it) would still have to contribute tax money towards the government when they buy food with their bridge cards.
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Soda is different from digital goods. Digital downloads are currently not being taxed, as the tax code doesn't include it as something that can be taxed. Now if my soda came through fiber-optic to my computer, I probably wouldn't be paying taxes on it.
Also, atleast 15 other states charge tax on digital goods. Its those states who arn't that need to catch up. This idea is hardly anything new or groundbreaking. A much better article would be the one about New York trying to get Amazon to collect tax for sales in its state. That has never been done before, and it affects every gamer here more than a $0.05 increase in iTunes costs for New Yorkers. If that tax actually stands, say bye-bye to tax-free online purchases.
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I guess I dont see the distinction between digital downloads and purchases made at the store. End result is the same, and I dont think the difference in method justifies a tax-free environment.
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This is beyond the point though; companies dont recieve the sales tax: governments do. There should be no distinction between digital and physical copies. If I steal a physical copy or a digital copy, its still theft. If I purchase a physical copy or a digital copy, its still legally mine. So what is the difference between downloading and physically buying that should make it tax-free? Can anyone who opposes this fair application of the law answer me that?
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XBL essentially does as well, but you pay the taxes on your MS points card, and not the downloads....
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1000's of people going to the mall causes stress on streets, mall needs power/water, services from employees ECT......the products of an entire mall can be put on one webserver, in a closet that is maintained by one guy, who also maintains 100 other servers of it's kind....I don't see why the gov has to be involved...
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