California looks to tax iTunes, other downloads

Mirroring efforts by a number of other states, including New York, legislators in California hope to apply sales taxes to iTunes and other digital downloads, according to the Orange County Register. The tax would result in the price of a 99-cent song going up to $1.07 or more for California purchasers, while more expensive downloads would also increase by roughly 8 cents on the dollar. Digital downloads from Apple and other companies would all be subject to the tax requirement. However, the report notes that the legality of California’s proposed “iTax” has come into question, as Assemblyman Charles Calderon of Whittier is attempting to use an unconventional and likely illegal voting strategy to get it passed, circumventing the state’s requirement that two-thirds of the legislature approve of any new tax. Consequently, should Calderon’s bill be voted into law, it will likely face immediate enforcement and other legal challenges.