Tough times are hitting New York City. Mayor Bloomberg has to come up with ways to make up for all of the lost tax revenue on Wall St. One of his solutions? Levy taxes on music downloads from Apple, Amazon and anyone else still selling music online.
For now, Bloomberg is proposing $894 million in new sales taxes, including:
-Increasing the sales tax by one quarter of one percent from 8.375 percent to 8.625 percent
-Repealing the sales tax exemption on clothing purchases under $110
-And new taxes on lots of things that are now tax-free, like music downloads.
That’s right – download a song or movie on your iPod and you pay new sales taxes.
We aren’t exactly sure how it would be enforced (by address of credit card?) nor when this will go into effect.
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