It’s been a big day for budgets today. First, President Obama released his budget proposal for fiscal year 2011 early this morning.
Then, moments after Oklahoma Gov. Brad Henry finished his State of State address at the Capitol, the Office of State Finance released Henry’s budget proposal for the upcoming fiscal year.
But this one caught my eye:
Capture Sales Tax on the Sale of Electronically Delivered Items
The Governor’s budget proposes the collection of sales tax be extended to include the sale of items delivered electronically that would otherwise be taxed if delivered physically. This would include items such as computer software transferred electronically, digital movies, digital songs, digital books, etc. The total increase in collections from this change is $3.46 million.
If the Legislature goes along with Henry’s proposal, then Oklahoma would join 18 other states that tax downloaded music, movies and books in some way. That could mean your Kindle downloads, iTunes music and movies and streaming movies from Netflix could be assessed a sales tax for the first time in the state. There’s no word yet on whether this proposal would also allow cities and counties to capture their share of the sales tax on those digital downloads.
For more information on these e-taxes, check out the following links:
Americans for Tax Reform’s Stop eTaxes site
Written by Paul Monies