Proposed North Carolina Download Tax Would Include Games, DLC

January 28, 2009 -

North Carolina's News-14 reports that state legislators are considering a proposal to levy sales tax on digital purchases, including video games, music, movies and software.

Such a measure could bring as much as $12 million annually to state coffers. Like many other recession-plagued states, North Carolina is facing a large budget deficit.

Rep. Paul Luebke (D, left) told News-14 that taxing digital goods makes sense:

We used to think of everything in terms of being tangible. Nobody thought of how you could possibly download anything.

So if you buy a book in a bookstore, you're going to have to pay sales tax on it. If you're downloading a book from a book seller, you should have to pay sales tax on that as well.

As GamePolitics reported last month, New York is considering a similar measure.


Comments

Re: Proposed North Carolina Download Tax Would Include ...

The tax man will tax anything they can find, I hope they never get to go through with this, surly the companies whose products are going to be taxed realise this will reduce their customers. Download games should only be taxed if the publishers agree to it, and I’m sure most will want to avoid it.

Re: Proposed North Carolina Download Tax Would Include Games,

Fine, so long as the server, client and transaction processor are all in North Carolina.

If not, then the tax infringes on the federal government's right to regulate interstate and international commerce, as enumerated in Article I, Section 8 of the United States Constitution.

I wish I lived in the state.  The instant it hit, I would download something on XBL, pay the tax and sue.

Re: Proposed North Carolina Download Tax Would Include Games,

That last bit was a reference to the Boston Tea Party. I might not have been clear enough.

Re: Proposed North Carolina Download Tax Would Include Games,

Ha ha, try and collect that tax when the company isn't based in your state. States have been moaning about online sales for years. Unless the company is in state you can't force them to collect, and do you think the customer is really going to self report? For now, this stuff is doomed to failure. When tech gets in place to make enforcement easy... we'll dump our digital downloads into the ocean!

Re: Proposed North Carolina Download Tax Would Include Games,

So, states can tax goods that use the state infrastructure.  Gasoline, food, electricity, etc. are taxed at a state level because the state has invested resources, and taxing goods and services transported through those supplied lines are understandable.  HOWEVER, a download is already taxed.  The income used to purchase that download has already been taxed by the state for all of it's prerequisite needs.  Companies that operate a business in the United States or in that particular state pay payroll taxes, etc., again to the needs of the state.

Effectively, they have received their tax revenue from the internet provider, from the power company, and from several other resources in relation to the transaction of a single purchase of a song.  I concur with Bill in this regard.  The taxes are created to support a government that can provide services to the nation/state/city.  The taxes should not provide and undue hinderance on transactions and business.  Taxes were created by the government to allow them to support the people.  The people were not created to provide taxes to an over inflated government.   It is time that the fat be trimmed, and the governments of the United States get a little leaner.  Cut the number of BS paperwork and red-tape, re-evaluate contracts for efficiency and cost effective ratios.  That is where you start.  Not looking for more ways to squeeze the people you have been elected to represent for a few more pennies on the dollar.

I would like to know how much of a $0.99 download is already based on tax revenue?  10%?  20%?

 

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

Re: Proposed North Carolina Download Tax Would Include Games,

Quit messing with my State, Luebke!

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Re: Proposed North Carolina Download Tax Would Include Games,

In the uk we already have to pay tax :(

 

Even subscription fees to MMOs and anything of steam for example, gets 17.5% added onto it as VAT. Nice

Re: Proposed North Carolina Download Tax Would Include Games,

I know that I get charged a sales tax for my WoW fees whenever the charge comes up on the credit card.

But I know a trick for getting around it. I live but 10 minutes from the state line, and the next state over doesn't have a sales tax. So I go there and pick up the 60 day prepaid card.

Re: Proposed North Carolina Download Tax Would Include Games,

What does VAT stand for.....Vigorous Analprobing Tax???

Sortableturnip's Law: As an online discussion of video game violence grows longer, the probability of a comparison involving Jack Thompson approaches 1

Re: Proposed North Carolina Download Tax Would Include Games,

Value Added Tax or something... basically a tax for the sake of tax these days.

UK tax system is a complete shambles from our benelovant "leader". Gordon Brown was chancellor for years before he became "Prime Minister".

Re: Proposed North Carolina Download Tax Would Include Games,

 The question is how this applies to downloaded content paid for using a fake currency like Microsoft Points or Nintendo Points- if the download tax is levied on these, then you get taxed twice- once when you buy the points, and again when you buy the content.

Dangerous game to start playing.

/b

Re: Proposed North Carolina Download Tax Would Include Games,

If they are smart they will only tax the purchase of points as that is the only time a real money transaction takes place. But let's face it, the majority of politicians aren't smart.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Proposed North Carolina Download Tax Would Include Games,

  Fuck, I hate politicians.  Cut your fucking budgets, pricks.  When I can't pay my cable bill, I have to cancel it.  I don't turn around and demand every other person in the state pay for my cable.  But that's what they do so to speak.

  If being a gamer becomes more expensive, then I won't be able to buy what I used to. So then to make up for people who are buying less (or quitting altogether) they'll have to raise the taxes on the remaining gamers.  More will quit, rinse and repeat...

 

Re: Proposed North Carolina Download Tax Would Include Games,

They can add it on with all of the other taxes we pay:

Accounts Receivable Tax

Building Permit Tax

CDL License Tax

Cigarette Tax

Corporate Income Tax

Dog License Tax

Federal Income Tax

Federal Unemployment Tax (FUTA)

Fishing License Tax

Food License Tax

Fuel Permit Tax

Gasoline Tax

Hunting License Tax

Inheritance Tax

Inventory Tax

IRS Interest Charges (tax on top of tax)

IRS Penalties (tax on top of tax)

Liquor Tax

Luxury Tax

Marriage License Tax

Medicare Tax

Property Tax

Real Estate Tax

Service charge taxes

Social Security Tax

Road Usage Tax (Truckers)

Sales Taxes

Recreational Vehicle Tax

School Tax

State Income Tax

State Unemployment Tax (SUTA)

Telephone Federal Excise Tax

Telephone Federal Universal Service Fee Tax

Telephone Federal, State and Local Surcharge Tax

Telephone Minimum Usage Surcharge Tax

Telephone Recurring and Non-recurring Charges Tax

Telephone State and Local Tax

Telephone Usage Charg e Tax

Utility Tax

Vehicle License Registration Tax

Vehicle Sales Tax

Watercraft Registration Tax

Well Permit Tax

Workers Compensation Tax

 

Why is it that we weren't paying these taxes 100 years ago?

Sortableturnip's Law: As an online discussion of video game violence grows longer, the probability of a comparison involving Jack Thompson approaches 1

Re: Proposed North Carolina Download Tax Would Include Games,

Why is it that 20%(employed [employer takes care of the other half])-40%(self employed) of everyone's income goes to the government...

It is all bullshit...  Income tax is technically illegal in the US, but they did it anyways...

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Re: Proposed North Carolina Download Tax Would Include Games,

Income taxes were legal. They just had to be apportioned among the states based on census data.

All the 16th amendment did was make it legal for them to collect the tax without apportioning it.

Re: Proposed North Carolina Download Tax Would Include Games,

I'm a huge fan of the flat tax, myself.  However, I don't see it becoming reality anytime soon.

"There is no sin except stupidity." - Oscar Wilde

"De minimus non curat lex"

Re: Proposed North Carolina Download Tax Would Include Games,

The internet is a global thing. How would they tax downloads in North Carolina? Would it for anything downloaded by a user in NC? Or for a seller in NC? And what about the location of the server?

Re: Proposed North Carolina Download Tax Would Include Games,

I think It would be better to just cut other programs to fix the defict

America has just became its own version of the Jerry Springer Show after a bizarre moment in Florida involving a carnival worker.

Re: Proposed North Carolina Download Tax Would Include Games,

Only a matter of time before we'll all have to pay sales tax on downloadable content, regardless of where we live.

The more popular it becomes, the more likely the government will find a way to squeeze some money out of it.  Nothing new or unexpected by it.

It sucks, but it's inevitable.  The shitty economy is only going to accelerate the process.

 

Tea and cake or death! Tea and cake or death! Little Red Cook-book! Little Red Cook-book!

Tea and cake or death! Tea and cake or death! Little Red Cook-book! Little Red Cook-book!

Re: Proposed North Carolina Download Tax Would Include Games,

Then I'm glad I'm still buying tangible things that were already taxed to begin with.  Its not like I'm loosing anything on this until physical media is completely kapoots. 

Re: Proposed North Carolina Download Tax Would Include Games,

I still say digital taxation is just going to encourage piracy...

"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety" - Benjamin Franklin

"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety" - Benjamin Franklin

Re: Proposed North Carolina Download Tax Would Include Games,

God, Luebke.  What the fuck man.  How about you tax all the illegal fucking immigrants in North Carolina, its supposedly somewhere around 4 million now right?  There's how you can pick up some goddamn money, not by taxing digital distribution.

Re: Proposed North Carolina Download Tax Would Include Games,

Give them legality if they pay taxes, problem solved.

If you are agains immigrants well we might have a argument between us ^^

Re: Proposed North Carolina Download Tax Would Include Games,

How about they pay taxes and they can have three year work visas?  In some states, the immigrant problem is out of control, and they often get access to benefits they ought not have.

Re: Proposed North Carolina Download Tax Would Include Games,

I usually think you are a crazy asshole of course, but here I agree. Register, pay your f'cking taxes, and become a resident alien or something. Then if you continue to work, pay taxes, not commit any crimes, learn English, etc., maybe you can apply for citizenship.

Re: Proposed North Carolina Download Tax Would Include Games,

I am against illegals that commit crimes.  Those that work hard, I feel, are more American than anyone in the US....  after all, we did steal their land...

I think anyone that commits a major crime (murder rape...) in the US should be sterilized and deported to Cuba or something...  US citizenship fully revoked.

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Re: Proposed North Carolina Download Tax Would Include Games,

"I am against illegals that commit crimes."

Erm... isn't that a tautology?  Illegals are by definition criminals.  Anyway, the vast majority of illegal immigrants work a lot harder for a lot lower wages than almost anyone else in the US.  And most of them would be happy to pay taxes.  The problem is not the immigrants - the real problem is the ethics (or lack of them) in the people who have a vested interest in hiring illegal immigrants.

Re: Proposed North Carolina Download Tax Would Include Games,

Until I can give it to a charity as a tax deducation, screw them all!

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