North Carolina to impose a digital download tax?

As part of their plans to modernise the state's tax code, North Carolina legislators are considering introducing digital download tax charges.

According to reports, such a measure could increase revenue by up to $12m, which in perspective to the state's current $20bn budget deficit, is a nominal amount. Items, including music, movies and video games, would all be affected by the changes, which Rep. Paul Luebke thinks is justified:

"We used to think of everything in terms of being tangible. Nobody thought of how you could possibly download anything. So if you buy a book in a bookstore, you're going to have to pay sales tax on it. If you're downloading a book from a book seller, you should have to pay sales tax on that as well."

North Carolina isn't the only state considering such tax amendments. Last month, New York officials confirmed a proposition to introduce an 'iPod tax' was being contemplated. These reports only demonstrate that it's not just the private sector that has been hit hard by the deepening recession.

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