New Jersey begins taxing iTS downloads like CDs and armored cars
The state of New Jersey is suffering from a slight $4.5 billion debt problem. Macenstein is reporting that amidst a recent sales tax increase and a frantic session of checking the sofa for change, Governor Jon Corzine has expanded the list of items which can be taxed to include, amongst other things, iTunes Store purchases. This means that all iTS downloads will be taxed at the same recently raised 7% rate of other newly taxable items such as storage space, tanning, health club memberships and security alarms.Interestingly, Dr. Macenstein also reports that he'll be trying to work around the new charges by changing his virtual iTS address to another state. C'mon Dr. M, you need to pay up for your tanning and limousine luxuries just like everybody else.
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The state of New Jersey is suffering from a slight $4.5 billion debt problem. Macenstein is reporting that amidst a recent sales tax...
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Ah, New Jersey.... I moved out of there after 15 years in that hell hole. From a former New Jerseyan - it is a fact that the government leaders pocket money, rub each others' backs, engage in nepotism to the umteenth degree.... New Jersey's taxes are extraordinary because the politicians have run New Jersey into the ground (financially speaking). The stay at home mom caring for her 2 year old and the 35 year old man who works 60 hours a week to afford the property taxes in New Jersey have NO TIME to pay attention to politics. The politicians are supposed to be working "FOR THE PEOPLE" regardless as to whether or not common citizens are watching. You can't blame high taxes on the people. The amazing thing is, it does not matter who is in office (the democrats or republicans), because there is a strong feeling of entitlement and financial rape when it comes to the politicians who run New Jersey.
October 03 2006 at 6:09 PM Report abuse Permalink rate up rate down ReplyI live in New Jersey, and I'll tell you, this could make me rethink whether to buy on the internet, or to go to the old brick-and-mortar. Luckily, I also maintain an address in Florida, and because someone is always going back and forth, it is cheaper for me to order the item, have it delivered there, and have someone bring the item up (or me, if I happen to be going that way).
October 03 2006 at 4:27 PM Report abuse Permalink rate up rate down Reply
How many poor people does the Commonwealth of Massachusetts have, in comparison to states like New Jersey, New York, and California? Not that much. Heavy State taxation is directly related to the number of poor persons living in the jurisdiction. More poor people = more social programs = higher taxation.
Me thinks the sales tax of Massachusetts would greatly expand if it were sharing a border with a third world nation like California does.
What most people forget is that NJ has the lowest taxes for gasoline and no tax on food and clothing. Therefore we pay higher property taxes, it kind of equals out. States like Massachusetts do well with low taxes because they don't have that many poor people, NJ might be one of the richest states, but cities like Camden and Newark need a lot more state help since property taxes don't help enough in those cities.
Until NJ realizes they can't run local governments all off property taxes and spreads the taxes out on other items, we will continue paying the highest property taxes. Spreading the tax will also help the poor cities since that money can be spread out, currently local property taxes stay local.
Another major problem is towns and cities that don't integrate their services with nearby towns and cities and instead have their own departments with their own managers, etc... adding more useless employees to the payroll. Two towns that are next to each other and fairly small should only have one police force, not two with two captains, two secretaries, etc...
"Yeah but Jersey doesn't have a tax on gas, "
Yes they do, get your facts straight.
http://www.newjerseygasprices.com/tax_info.aspx
I like how ABSOLUTELY NO ONE mentioned that it is Corzine and his administration that couldn't get their act together to make a state budget. Because of that they lost 10s of millions of dollars in tax revenue from casinos. I just think it's hilarious that Corzine has the stones to suck more money from the citizens of NJ when it was him that greatly contributed to the problem.
October 03 2006 at 2:17 PM Report abuse Permalink rate up rate down Replyapart from the iTunes Tax - what startles me more are the other things like health club memberships and security alarms. I mean what are they trying to achieve?
Wouldn't it be better to tax fatty foods, sweets and unhealthy drinks, and increase the fines for crimes?
just a thought.
OK, here in Indiana, here's how it's gone for a long time (I think it's the same in other states). If a company has a physical presence in the state of Indiana (i.e. brick-and-mortar store), then any purchases made from that company in-store, over the phone, or online are taxable if you live in Indiana.
Apple has a physical presence in Indiana, so we've been paying taxes on iTS purchases for a long time.
#18. I was exaggerating a little; I realize that. I also mean it when I say: A LITTLE! If you don't like it, move to Australia, New Zealand, Mexico or Korea!
Thomas aka #9
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