Download Tax to be Implemented in Wisconsin Posted: 6:12 PM Feb 19, 2009
Last Updated: 6:12 PM Feb 19, 2009
Reporter: Tina Stein
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A | A | A To some it's just background noise, but to Emily Irwin, a treat. Irwin indulges in this treat by downloading about two new songs per week.
"I like to convenience of not having to buy a whole CD when I really only want one song I really like and it's really easier when you want to put the music on your IPod and not have to upload the CD and do all that hassle," she says.
Her collection sits at 371, an average song 99-cents. But jamming will now start costing more money. Wisconsin lawmakers just approved a bill requiring a five-percent sales tax on internet downloads. This effects everything from music, E-books and ring tones.
Taxing downloads is not only intended to help raise money but also keep more mom and pops like Exclusive Company competitive.
"We fill a niche for people that once its gone it's tough to replace so we try really hard that when you come into our stores, you're getting the full experience," says Leann Heise, Manager of Exclusive Company in Janesville.
Managers say they've seen a slight dip in business due to the era of the digital download. But lawmakers hope by taxing the competition, more companies physically in Wisconsin could stay in place.
"This is not a straightforward issue and it's going to take some time to have the system up and running," says Wisconsin House Majority Leader Tom Nelson.
October first is the destination date. And until then, state leaders are trying to figure out how you implement a tax on the world wide web.
Wisconsin Governor Jim Doyle hopes this will generate about 11-million dollars over the next two years. We spoke with a representative with the Illinois Department of Revenue today. And she says Illinois looked into taxing the web as well, but opted out, since it's difficult to tax businesses that don't have physical locations in the state.
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