[nylug-talk] new jersey to tax

Dan Crosta
Fri Sep 29 07:42:29 EDT 2006


On Sep 29, 2006, at 6:14 AM, mylar wrote:
> Don't some states already impose taxes on Internet related purchases ?
>
> mylar

Well we all know that physical purchases made over the internet are  
taxed at your state's sales tax rate if the company has any physical  
presence in the state -- a warehouse, an office, etc.  I'm not sure  
this is true for electronics-only purchases, or content purchases,  
though I imagine it is the case as well.

On an aside, I'm not sure that taxes have ever really been much of a  
consideration in people's purchasing decisions for such small-ticket  
items. If we're talking about the difference between a $0.99 iTunes  
download vs. a $1.065 download (w/ 7.5% jersey sales tax)... I mean,  
aside from the ugly number, I'm not sure it actually makes much of a  
difference.

Kevin, can you cite the study that people spend at most around 20  
dollars per year on online music downloads? Just from surveying my  
friends, it feels more like people either spend 0 or 150-200 a year  
on downloads, depending on whether they object in principle to Apple  
DRM or not.

- d


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