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. ;^)
They'd have to cut all ties with banks and financial institutions with a physical presence in NJ as well. In California they extract money from out of state businesses by slapping a court order a local bank branch if the out of state business has any money with that bank. California takes a huge block of money out of their account, far in excess of the amount they believe they are owed, and makes the business fight for their money back.
Article I, Section 8, Clause 3 of the United States Constitution says that only the federal government has the power to tax interstate commerce. How California gets around this is by calling it a "use" tax. If you use something bought out of state you owe a use tax equal to the sales tax. Gimmicks like this should be tossed by the courts.