Posted on 10/07/2006 1:14:09 AM PDT by HarmlessLovableFuzzball
Beginning this week, New Jersey residents purchasing music and videos from services like Apple's iTunes and rival digital downloads e-tailers encountered something they'd previously only found at bricks-and-mortar counterparts: a sales tax.
Democratic Governor Jon Corzine proposed the sales tax expansion earlier this spring to help the state to recover from a $4.5 billion budget deficit, an ABC News affiliate in New York reported recently on its Web site. The changes, along with a sales tax rate hike from 6 to 7 percent, took effect on Oct. 1.
According to a CNET News.com special report completed in April, 15 states and the District of Columbia already included media downloads in their sales tax regimes, and a handful of others--New Jersey included--were contemplating similar moves.
Garden State officials didn't stop at downloaded music and videos for the newly taxed set. New Jerseyans must now pay taxes on data processing; tanning, massage and tattooing services; limousines; and flooring and carpeting installation, among other things.
They like this kind of thing in New Jersey.
They sure do. They will tax anything in NJ. Apparently the citizens don't mind.
NJ is the most taxed state in the country.
George Harrison: TAXMAN, The Beatles
Aw c'mon Rush...its just "the rich paying their fair share". eheheheheheheheh!
BTW what's with the long nics? It takes forever to type them.
Air will be next.
Funny, I don't live in New Jersey - and neither should anyone else.
How do they define data processing? Sounds like a big open hole to me.
Another example of anti-freedom socialists doing what anti-freedom socialists do.
Y'know both political parties have long licked their chops at the prospect of taxing commerce conducted on the Internet.
Up to now though I'd thought their best efforts had been for the most part staved off.
Now I understand if I purchase a product from a vendor within my home state, the state doesn't give a rats pa-toot whether the transaction occurred via Internet or across the counter of a store.
I pay sales tax on products purchased in state.
One of the main reasons I shop out-of-state businesses, I'm not charged sales tax. A lot of other people do likewise; hence, why states have failed to successfully pass an Internet sales tax.
People flat out said, "No".
Now this?
Does this only effect NJ residents doing interstate business, or, does NJ intend taxing all state's residents purchasing music from vendor servers located in New Jersey?
I don't get it. (common condition, not to worry)
If it's from all state's citizens NJ's intending to soak, aren't all other states going to naturally want to follow suite since they'll not want to miss out on their pound of flesh?
Could it be NJ is a "trial balloon" in this area the other states are watching, given the previous failed efforts to pull this off?
The citizens of NJ have to be pretty damned passive if they're allowing this kind of crap to go down without a peep.
Geshhhhh.
"BTW what's with the long nics? It takes forever to type them."
Thought I was the only one who noticed that.
Felt it better to keep my mouth shut about it.
...& that ain't easy. :o)
The typical rationale for collecting such taxes is "you bought it from a company that has an office or store in this state, so you have to pay the sales tax here." That's how the Apple Store works - even if you order product over the internet, and even if it was sent from another state, if there's an Apple Store or Apple office in your state, you have to pay your state sales tax. This is par for the course for large national companies.
Same thing with Walmart.com. If there's a Walmart in your state and you buy something from Walmart.com, you have to pay your state sales tax.
That said, that's only been applied to actual, physical goods, not services or intangibles. I'm *really* hoping this does *not* pan out.
The smart thing for Apple to do is pull all Apple Stores and facilities out of NJ and tell NJ to try to collect it when they have no standing.
I'm with you there, having done a LOT of Internet commerce over the years.
There're times I cannot get around it, such as Best Buy etc, all have stores in state *and* Internet sites.
"That said, that's only been applied to actual, physical goods, not services or intangibles."
I seeeeeee.
The songs are merely data xmissions which up to now have been classified an "intangible".
Got it.
"I'm *really* hoping this does *not* pan out."
What's to pan, it's a done deal, isn't it?
Don't know 'bout you but in all my years I've *never* & I mean *ever* seen a tax that didn't pan out. LOL
Man once this crap gets a foot in the door it's all over for the taxpayer, forever.
"The smart thing for Apple to do is pull all Apple Stores and facilities out of NJ and tell NJ to try to collect it when they have no standing."
Totally agree.
The ol' Walmart solution to unionization.
...works every time. ;^)
NJ is the most taxed state in the country.
It used to be that clothing wasn't taxed in NJ. Is that no longer the case? I remember that from when I was in high school in NY, and there was outrage when the state of NY sent "agents" to NJ shopping malls to get lists of NY license plates, and they actually sent letters to NY residents telling them it was illegal to shop in NJ in order to escape paying the NY sales tax. To say there was public outrage doesn't even begin to cover that one.
Mark
That's the simple, easy to remember, one-word indentifier of Democrats.
NJ is a thugocracy. I will be moving out withing 5 years. This last Corslime tax orgy was it for me.
I have been trying to tell my mother that for 20 years!
Why was tattooing exempt from taxation in the first place? Did tattoo artists have that much sway with the legislature that they could threaten to move to another state if they were taxed?
Tanning ? What's next?
I'm sure there will be a lower tax rate on air for those living in Perth Amboy or Bayonne.
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