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Tennessee govt mulls digital media taxation

updated 07:10 pm EDT, Fri April 25, 2008

Tennessee mulls iPod tax

The Tennessee State government is reviewing the possibility of implementing a tax on digital media downloads, which would include music videos, movies, news and entertainment programs, music, ringtones, and electronic books, among others. Law firm Waller Landsen notes that standard software downloads would not be taxable, and while the proposition has not been shown to lawmakers, it is predictably drawing negative criticism.

"Most states do not tax digitally-deliverd products," said state communications director Bill Hobbs. "Tennessee shouldn't either and state government's current fiscal crisis should not be used by the Bredesen administration as an excuse to hit the people of Tennessee with a new tax that could cost them tens or even hundreds of millions of dollars."

The law is being considered in light of a $500 million deficit in the state budget.

[Via iPod Observer]

By Electronista Staff


  1. PBG4 User

    Senior User

    Joined: Feb 2001


    State of CT

    The state of CT is deciding whether or not to charge a 6% delivery charge on all package deliveries originating outside of CT as a way to recoup sales tax losses due to internet sales.

  1. ClevelandAdv

    Fresh-Faced Recruit

    Joined: Jul 2004


    Note to Govt.

    Would it be ok if we could keep just a few cents of every dollar we earn? I know it is hard work finding ways to wast so many trillions of our cash.

    I have a crazy idea, how about spending less - like most people and businesses do when money is tight.

    Doh! I forgot .... your like crack addicts, maybe it's time to go into rehab.

    Boy am I glad I live in Ohio where the taxes are only 5th highest in the country!

  1. testudo

    Forum Regular

    Joined: Aug 2001



    So why exactly would software not be taxed, but other downloads would be?

    And how in the h*** can CT tax packages? Will they stop trucks at the borders?

  1. zehspoon1

    Fresh-Faced Recruit

    Joined: Mar 2007



    Tennessee residents already pay tax on iTunes downloads now. It isn't really anything new when it comes to doing business with businesses that are located in Tennessee

  1. MeandmyMac

    Fresh-Faced Recruit

    Joined: Feb 2008


    revolt, I say!

    If everybody pulled a Wesley Snipes and didn't pay their taxes the problem would be solved. But EVERYBODY has to be in on it. Don't worry about jail... no taxes collected means no money to pay salaries of judges to try you and no money to build increase jail cell space to handle "We the People"! Unfortunately, everyone, myself, guilty as charged, will continue to pay on a system that requires an "Honor Code" mentality and a people that voluntarily pay up on every little thing the government dictates without question and what do we have to show in our collective little states or as a nation as a whole???? And don't buy into this "Change" all the politicians running for president are saying, because there isn't a dimes bit of difference between the three! Mark my words.

  1. JackWebb

    Fresh-Faced Recruit

    Joined: Aug 2007


    no party mention?

    Why are no political parties mentioned in this? Obviously this would be an unpopular idea.

    So I went and looked it up myself and found out it is the democrat governor's idea, Phil Bredesen, not just some unnamed "state government". Also this story misidentifies "state communications director Bill Hobbs". Wrong!! He is "communications director for the Tennessee Republican Party.

    Bad biased reporting exposed.

  1. JackWebb

    Fresh-Faced Recruit

    Joined: Aug 2007


    Do something about it

    Voters should make their voices heard by contacting the Governorís Office by calling 615.741.2001; sending a fax to 615.532.9711 or emailing

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