Posted Dec 18, 2008 at 06:17PM by Mabie A. Listed in: News, Games Tags: New York
Ó

Stick em up - Image 1What'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:


[Via New York Proposed Budget pdf] Permalink  |   Email this  |   Linking Blogs   |   Digg It!

Bookmark / Find this article on:


27 Comments


Sort by:
   by Advertising -
   by RommelTJ - 2008-12-18
 » Seriously Mabie

Your pics are the best ever! But yeah, more taxes = :(

   by Shatterdome - 2008-12-18
 » wow...

They are just begging people to download their music illegaly with this....not to much you can do about DLC though.

Maybe they should average out the amount of breaths the average person takes and start charging a monthy air tax as well....


   Re: Matt-N - 2008-12-18
 » !

Shhhhhhh. Don't give 'em ideas!
   by dargx001 - 2008-12-18
 » Sounds Familiar

If I remember correctly didn't we have a whole war with England on just this very subject. I mean come on taxing somethings yes, taxing everything now. Well at least there isn't a tax on how many characters you type in a message...yet.

   by Stario001 - 2008-12-18
 » .

OMG i love that pic. XD

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.

   by papajag - 2008-12-18
 » ...

Next thing you know we're gonna get taxed for weed, online porn and hookers. Damn aint this a B!t(h.

   by Robman62 - 2008-12-18
 » So dumb

Wow Gov Patterson needs to get his blind behind out of office....whatever happened to the good old hooker lovin governor that we elected.

   by racing59pinto - 2008-12-18
 » $.04

Oh no, how will I ever find the extra $0.04 it will cost me to purchase that song now. If anyone plans to pirate songs instead of paying $0.04 more, I doubt they purchased any songs legally anyways.

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 :).


   Re: FreePlay - 2008-12-19
 » ...

You're an idiot.

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.

   Re: racing59pinto - 2008-12-19
 »  really?

I won't resort to personal insults as you did, even if it does suit you better.

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.

   Re: phiyuku - 2008-12-19
 » This is additional...

Like soda now you pay 8.375 but if this passes we will see a 15% tax instead of an 8.375

   Re: racing59pinto - 2008-12-19
 » iTunes currently charges no tax.

As I said earlier, the 99c you pay for a song does not include tax. How you think you are already being taxed for that song doesn't make sense to me. Either you are incorrect, or not from New York.

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.

   Re: Shatterdome - 2008-12-20
 » I think....

Lot's of these people are talking about PSN, which does charge taxes when you go to check out....

XBL essentially does as well, but you pay the taxes on your MS points card, and not the downloads....
   by deyanimay9 - 2008-12-19
 » BS

This is bes ny state already has like the highest taxes on everything else now they want to ad additional taxes on dlc and even soda and sugary drinks. All because of those greedy banks that went bankrupt.

   by projectionist - 2008-12-19
 » WE ALREADY ARE TAXED

When you purchase MS points, PSN Dollars, and Wii Points both on console AND in-store, you are paying tax on those points!

This is double taxation!

   by marcoo624 - 2008-12-19
 » Remember?

Doesn't anyone remember from school a longtime ago we had a war with Great Britain? one of the biggest issues was "no taxation without representation". What is happening to America... Sure times are bad, but this country has seen far worse times economically but managed to pull out of it without edging towards socialism and that's the way it seems things are going these days.


   Re: racing59pinto - 2008-12-19
 » no taxation without representation?

I'm guessing you might have missed what that neat phrase really means. Did you notice the election last month? Representation happened, and now the taxation comes. Complain about taxes all you wont, but dont compare yourself to what the founding fathers went through.
   by GUNBEHINDTHESUN - 2008-12-19
 » NO David Patterson NO!

He's just mad that he can't see the games.

   by ForgottenSoup - 2008-12-19
 » racing59pinto

I'm curious to see how paying tax to another company via their website would benefit a local walk-in store that sells physical copies of the product?

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.


   Re: racing59pinto - 2008-12-19
 » re

Even if the local store charges the same exact price for the CD, you will still pay more because of sales tax. Its not a question of whether the stores would benefit, its a question of fairness. Why should digital goods be so different than physical ones? That ammounts to a subsidy for online-distributors, and I dont think they need the help. If video games are to become only digital in the future with no physical copies, you better believe that they will be taxed.

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.

   Re: ForgottenSoup - 2008-12-19
 » re

Digital media distribution has less end-cost. That is one less guide, case, and CD/DVD to create, manufacture, distribute and market. I feel that if you get less then you should pay less. There are some people(like myself) who would prefer to own the physical copy and would be more than willing to pay extra to own them.

   Re: racing59pinto - 2008-12-19
 » I completly agree.

We should pay less for digital copies compared to physical. The distribution and manufacturing costs are virtually 0, so the only cost for Apple is IP. Yet somehow, you will pay more for a movie from Itunes than you will at a store. Same goes for CDs.

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?

   Re: Shatterdome - 2008-12-20
 » I would say...

Because there is less/no stress on government infrastructure when downloading digitally.

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...
   by ForgottenSoup - 2008-12-19
 » Understood.

Good point. In that case I really don't mind the tax. A smaller tax for something that takes less work to distribute seems viable.

   by acerious - 2008-12-19
 » patterson is a

mole

   by Binary - 2008-12-20
 » Tax's

Now New York Gov'nor is going tax amount of keys you type.


   Re: acerious - 2008-12-20
 » my dear binary,

i didnt know you can tax keys


Add QJ.NET
Add to My Yahoo!
Google Reader Subscribe with Bloglines
Add  to your Kinja digest Subscribe in NewsGator Online
Subscribe with Pluck RSS reader Add 'www.qj.net' to Newsburst from CNET News.com
Subscribe with SearchFox RSS del.icio.us www.qj.net
Add to Technorati Favorite! Add to My AOL
furl! it Stumble for Treehugger!

 Username: 
 Password:
Forgot password
New user registration



Categories
Emulators
Titles
Archives