Congress Takes Aim At iTaxes
July 8, 2010 at 4:53 AM (PT)
A new proposal in the U.S. Congress, sponsored by Reps. RICK BOUCHER (D-VA.) and LAMAR SMITH (R-TX.), is taking aim at "iTaxes," which have popped up all over the country in the last three years. CNET reports "some 23 states and the DISTRICT OF COLUMBIA levy sales taxes in one form or another on e-books, music, apps, ringtones and other digital downloads.
The bill, is part of a broader effort by technology firms and telecommunications providers to push back against what they view as tax agencies that are unreasonably singling out electronic purchases with unfair, expensive and confusing rules.
APPLE, AT&T, ELECTRONIC ARTS, COX COMMUNICATIONS, VERIZON, T-MOBILE and TIME WARNER CABLE are among the companies that have endorsed the legislation, saying that "fast-paced technological and commercial changes are making it increasingly difficult, and in some cases nearly impossible" to comply with "confusing and conflicting" state tax laws.
"It is definitely a growing problem as states that are adopting legislation each take a different approach to the issue," said SUTHERLAND ASBILL AND BRENNAN partner STEPHEN KRANZ. "As electronic delivery of content and services grows, so too will the problems associated with multiple and discriminatory state and local taxation."
Read the full article here.