Are You Paying the iTunes Tax?
Nearly half of U.S. states charge sales tax on digital goods: If you live in one of them, you may be paying more for everything from downloaded music to streaming video.
Nearly half of U.S. states charge sales tax on digital goods: If you live in one of them, you may be paying more for everything from downloaded music to streaming video.
The Marketplace Fairness Act currently before Congress would allow states to tax online retail sales. The measure's most surprising supporter: Amazon.com.
Brick-and-mortar retailers have long complained that e-commerce sites enjoy an unfair advantage since they don't have to collect state sales taxes, allowing them to offer lower prices. The Marketplace Equity Act would change that -- and it's gaining momentum.
Amazon has offered a $300 million investment and the promise of 5,000 jobs in the state of Texas in exchange for a reprieve on collecting sales tax on purchases made by Texans. It's just one of many similar deals being offered by the e-commerce giant, and Texas is said to be considering it.
A district court has ruled that if North Carolina wants to collect sales taxes, it can ask Amazon for the information it needs, but no more. By asking for detailed info about residents' purchases, the court said the state went too far.
As states grapple with increasingly squeezed budgets, the battle to collect sales taxes from retail behemoth Amazon has heated considerably over the past year. Now, Texas has raised the ante by hitting Amazon for four years of back sales taxes.








