iTunes Tax Causes Infinite Delay On Technical Corrections Vote
Posted on May 13, 2008 at 8:54 amFrom Tom Humphrey:
Two Washington, D.C., attorneys criticized another provision of the bill that would change the language in Tennessee law for taxation of downloaded books, movies and music.
Farr contends such downloaded items are already clearly taxable under a law that took effect Jan. 1 and were arguably subject to tax before that. Most major sellers of downloaded goods are already paying Tennessee sales tax, Farr said.
But Stephen P. Kranz, who said he advised companies including Microsoft and Time-Warner, and Marie Kalamaras Lee, legal counsel on tax policy for the American Electronics Association, said they disagreed with Farr’s interpretation.
“This is a fundamental change in the state’s tax policy,” said Lee, contending enactment would have a negative impact on the state’s economic growth and “increase the possibility of piracy.”
When the bill came up for a vote, Senate Democratic Caucus Chairman Joe Haynes, D-Nashville, declared he wanted to amend the bill to delete both the FONCE provision and the downloading tax provision.
With that, Sen. Jim Kyle, D-Memphis, sponsor of the “technical corrections bill,” asked for an indefinite delay in the vote. He noted that Bredesen is counting on the $27.2 million in new revenue - $15 million of that coming from the FONCE provision - toward balancing the state’s budget in a time of cutbacks.
PREVIOUSLY:
If It’s New, We Can Kill It: TNGOP’s Presser On The iTax
Revenue Commissioner Stands By iTunes Tax Legality
Tennessee Already Collecting Revenue From Digital Media Downloads
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Terry Frank
