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View Full Version : NJ to start charging iTunes tax this Sunday


MacBytes
Sep 28, 2006, 10:42 PM
http://www.macbytes.com/images/bytessig.gif (http://www.macbytes.com)

Category: News and Press Releases
Link: NJ to start charging iTunes tax this Sunday (http://www.macbytes.com/link.php?sid=20060928234247)
Description:: Today NJ Governor Corzine announced that he has expanded the list of taxable items for New Jersey residents, and starting Sunday (October 1st) that list now includes iTunes downloads.

Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug

scott523
Sep 28, 2006, 10:54 PM
Omg this is outrageous! 7% tax on all online music downloads! Everyone living in NJ are going to kick Governor Corzine out. Something must be done...perhaps moving out of NJ? stop buying online music in protest?

corywoolf
Sep 28, 2006, 11:03 PM
Guess it's back to bittorrent for me.

tk421
Sep 28, 2006, 11:03 PM
I've always paid tax on iTunes downloads, starting the week the service debuted. I'm sure some other states have as well.

Aaon
Sep 28, 2006, 11:10 PM
I'm in Indiana, and I definitely get charged already...

Superdrive
Sep 28, 2006, 11:12 PM
At home, in MN, I can buy iTunes Store cards at Target that are tax-free. Anything I download on iTunes using my Visa, on the other hand, includes tax making my songs run 1.06.

Edit: Apparently, in MN, this has changed. My recent receipts from iTS show no tax. I suppose the above is now irrelevant, unless your Target doesn't tax gift cards.

scott523
Sep 28, 2006, 11:16 PM
I've always paid tax on iTunes downloads, starting the week the service debuted. I'm sure some other states have as well.Haha no way for me, Apple made it $0.99 for a reason and I'm not gonna pay $1.05 for a song. Pennsylvania got better things to tax on goods (cigarettes? alcohol perhaps?) and iTunes would probably be their last option.

In NJ's case, it's embarrassing to see Governor Corzine tapping into goods and (online) services for money. They got their huge gambling city as revenue and they're still broke and evidently desperate for cash.

Bill Gates
Sep 28, 2006, 11:26 PM
This is bad for us consumers but from New Jersey's viewpoint there will be lots to gain from taxing iTunes. Most customers will simply continue using iTunes and not make much fuss about it.

solvs
Sep 29, 2006, 04:16 AM
I had to pay tax on it in WA. Doesn't seem like a big deal, but it is kind of a put off. I knew I'd be moving to CA soon, which doesn't charge, so I waited to use my gift certificate. Technically you're supposed to pay tax on them anyway, but no one reports them. I think it's stupid, but what are you gonna do.

Fender2112
Sep 29, 2006, 07:14 AM
I guess you folks forgot why we pay taxes. Don't get me wrong. I don't like paying any more than I have to for anything.

Along with taxing everything, perhaps Governor Corzine (along with all the other states who can't seem to balance a check book) should probably do a little house cleaning.

iGary
Sep 29, 2006, 07:17 AM
I guess you folks forgot why we pay taxes.

Yeah, to pay for services we never use.

steve_hill4
Sep 29, 2006, 08:02 AM
The US should follow the example of the rest of the world and display all prices including tax.

Sure, each state has different tax laws, so it becomes near impossible to work, but that is really the only way pricing becomes straight-forward and transparent.

mainstreetmark
Sep 29, 2006, 08:11 AM
The US should follow the example of the rest of the world and display all prices including tax.

Sure, each state has different tax laws, so it becomes near impossible to work, but that is really the only way pricing becomes straight-forward and transparent.

I totally agree, man. I love traveling around the world like to New Zealand where tax is included in the displayed price. None of that "How much for the 99 cent cheeseburger" business we have to put up with here. Also, when in a big food line with a $3 meat pie and a $1.50 coke, you can have $4.50 ready and waiting. Lines move quicker. No change. Love it.. Love it...

Why not just display a sign in retail locations that say "these prices include 6% sales tax".

p0intblank
Sep 29, 2006, 08:24 AM
Ugh... not good news at all. :( This won't affect my purchasing behavior, but it's still annoying.

BOOMBA
Sep 29, 2006, 08:24 AM
I totally agree, man. I love traveling around the world like to New Zealand where tax is included in the displayed price. None of that "How much for the 99 cent cheeseburger" business we have to put up with here. Also, when in a big food line with a $3 meat pie and a $1.50 coke, you can have $4.50 ready and waiting. Lines move quicker. No change. Love it.. Love it...

Why not just display a sign in retail locations that say "these prices include 6% sales tax".


mmmm....
$3 meat pie.....

timnosenzo
Sep 29, 2006, 08:29 AM
Yeah, to pay for services we never use.
Oh yeah? So you never drive on a public road, or walk on a public sidewalk, or went to a public school, or......

Warbrain
Sep 29, 2006, 08:30 AM
I've had to pay taxes in Illinois for a bit now. 1.03 for a 99 cent purchase on iTunes.

But I'm going to start getting the iTunes gift cards since they're tax-free. That's not a bad f'n idea.

timnosenzo
Sep 29, 2006, 08:33 AM
But I'm going to start getting the iTunes gift cards since they're tax-free. That's not a bad f'n idea.
But you will probably still have to pay tax when you make the music purchase. They get ya one way or another... ;)

jholzner
Sep 29, 2006, 10:03 AM
I've had to pay taxes in Illinois for a bit now. 1.03 for a 99 cent purchase on iTunes.

But I'm going to start getting the iTunes gift cards since they're tax-free. That's not a bad f'n idea.

Odd, I live in Illinois as well (Champaign) and I've never paid tax on my iTunes purchases.

uzombie
Sep 29, 2006, 12:02 PM
Haha no way for me, Apple made it $0.99 for a reason and I'm not gonna pay $1.05 for a song. Pennsylvania got better things to tax on goods (cigarettes? alcohol perhaps?) and iTunes would probably be their last option.

In NJ's case, it's embarrassing to see Governor Corzine tapping into goods and (online) services for money. They got their huge gambling city as revenue and they're still broke and evidently desperate for cash.

iTunes is NOT a necessity. And AC already forks alot over to the State. What you should complain about (and you are not) is how Street & Rendell Gang, Co., got away with PA toll increases to (cover) building a loser's stadium (with funds from other state sources).

And I give Corzine credit; atleast he isn't whining that he was left with a mess from last three Governors to cleanup (Whitman's failure at taking funds from pensions and not replacing it..or having a clue that she should, spending millions on a waterfront park that has created nothing but congestion, wasting tax monies on "studies and projects" that never produced, McGreevey's failed attempts at controlling property tax and the joke of all NJ taxpayers, the Homestead Rebate (in othewords, you pay more tax than you should, NJ then sits on billions, then reaps interest, then 9 months later spends more infrastructure monies to dole out the "rebate").

Gee, $.07 cents. They should have raised the gas tax...there.

yg17
Sep 29, 2006, 12:32 PM
NJ sure does love taxes. I worked at a major rental car company over the summer for an internship, and part of my job was to test their POS software setup for a NJ location to make sure the functionality that adds a $5 (i think it was $5) a day charge for rental cars was being added correctly. No other states had that.

Plus, you can't pump your own gas, I wonder how much extra they charge you guys in gas tax to cover the extra employees

GooMan
Sep 29, 2006, 12:39 PM
iTunes songs are $1.07 for me and always have been. :mad:

jlewis2k1
Sep 29, 2006, 12:56 PM
never paid taxes on my songs/shows in nebraska :-D

AvSRoCkCO1067
Sep 29, 2006, 12:59 PM
Yeah, to pay for services we never use.

...do you ever leave your office? :rolleyes:

iGary
Sep 29, 2006, 01:03 PM
Oh yeah? So you never drive on a public road, or walk on a public sidewalk, or went to a public school, or......

I don't have any kids.

My parents paid taxes to send me to public school.

Why should I have to pay a higher tax burden for services I don't use when others get to write off half their taxes for their kids?

I can't even afford to go part-time to a state-funded university right now.

I just paid the state $1,200.00 for the privelege of owning property for my business, yet I don't qualify for any state-funded small-business grants because I "make too much money" (and believe me, I don't make a lot).

So yes, I am happy to pay taxes in case I need the police or fire department or for other emergency services. But you obviously have not driven on the roads here in Anne Arundel County.

I certainly do not use even 25% of what I pay for in taxes.

I've never understood people's willingness to give away their money when the return from the investment is so small.

tk421
Sep 29, 2006, 01:37 PM
I don't have any kids.

My parents paid taxes to send me to public school.

Why should I have to pay a higher tax burden for services I don't use when others get to write off half their taxes for their kids?


That's absurd. If only those with kids pay for public schools, they really aren't public. I don't have kids, but I will gladly pay a few cents per dollar if it means that schools are available to everyone.

iGary
Sep 29, 2006, 01:39 PM
That's absurd. If only those with kids pay for public schools, they really aren't public. I don't have kids, but I will gladly pay a few cents per dollar if it means that schools are available to everyone.

Few cents per dollar?

I'm not taking issue solely on the fact of paying taxes and public schools, but the people who utilize that service the heaviest pay less in taxes on their income, in general, than I do - fair?

I understand that it is important as a community for us to pay taxes for kids to get educated - it's to our advantage.

I'm asking for some help for the working guy who has little to nothing in the way of shelter for taxes, especially when I use so little.

tk421
Sep 29, 2006, 01:50 PM
Few cents per dollar?

I'm not taking issue solely on the fact of paying taxes and public schools, but the people who utilize that service the heaviest pay less in taxes on their income, in general, than I do - fair?

I understand that it is important as a community for us to pay taxes for kids to get educated - it's to our advantage.

I'm asking for some help for the working guy who has little to nothing in the way of shelter for taxes, especially when I use so little.

Sorry if I misinterpreted.

My "few cents per dollar" comment was referring to sales tax (which is what this board was about in the beginning). Sales tax effects those who buy more, and who in effect have more to spend. I suppose taxes will never be completely "fair" because it gets too complicated to measure exactly who uses what to what degree.

Anyways, I didn't intend to get into a deep discussion of tax systems. I really don't have that much knowledge about financial things anyway.

ITASOR
Sep 29, 2006, 01:56 PM
Guess it's back to bittorrent for me.

You pay tax when you buy a CD at the store...what's the difference?

Warbrain
Sep 29, 2006, 02:06 PM
Odd, I live in Illinois as well (Champaign) and I've never paid tax on my iTunes purchases.

Might just be a Cook County thing, then. It wouldn't surprise me if they charged a tax on digital downloads in this county.

Warbrain
Sep 29, 2006, 02:06 PM
But you will probably still have to pay tax when you make the music purchase. They get ya one way or another... ;)

I don't think so. Or at least I haven't noticed it when other people use their gift cards here. I'll have to find out what the deal is...

iGary
Sep 29, 2006, 02:12 PM
Sorry if I misinterpreted.

My "few cents per dollar" comment was referring to sales tax (which is what this board was about in the beginning). Sales tax effects those who buy more, and who in effect have more to spend. I suppose taxes will never be completely "fair" because it gets too complicated to measure exactly who uses what to what degree.

Anyways, I didn't intend to get into a deep discussion of tax systems. I really don't have that much knowledge about financial things anyway.

No biggy - and I don't expect a lot of people to agree with what I am saying.

I guess you get a different perpective on things when you actually write the check to the government every three months (I'm self employed).

No foul.

iKwick7
Sep 29, 2006, 02:23 PM
Plus, you can't pump your own gas, I wonder how much extra they charge you guys in gas tax to cover the extra employees

You'd think so, wouldn't you? From my experiences, NJ actually pays LESS for tax than other states I have been to.

Jschultz
Sep 29, 2006, 03:06 PM
Might just be a Cook County thing, then. It wouldn't surprise me if they charged a tax on digital downloads in this county.

Well, luckily I don't live in the city of Chicago. 9% sales tax. Although where I work in Bolingbrook it is 8%. Oh well.

Not that an extra percentage point hurts me for small purchases. Now a $3000 laptop, yeah..

wmmk
Sep 29, 2006, 05:56 PM
But you will probably still have to pay tax when you make the music purchase. They get ya one way or another... ;)
i only use gift cards. i never have to pay tax. also, im pretty sure the Michigan Avenue store doesn't charge tax on iTS cards.

bobber205
Sep 29, 2006, 06:11 PM
NJ sure does love taxes. I worked at a major rental car company over the summer for an internship, and part of my job was to test their POS software setup for a NJ location to make sure the functionality that adds a $5 (i think it was $5) a day charge for rental cars was being added correctly. No other states had that.

Plus, you can't pump your own gas, I wonder how much extra they charge you guys in gas tax to cover the extra employees

Oregon is like that too.