updated 11:10 am EDT, Tue October 3, 2006
NJ, iTunes sales tax
New Jersey governor Jon Corzine is pushing for a new law that would tax individual iTunes Music Store purchases to help alleviate the state's $4.5 billion debt. Governor Corzine recently began taxing individual services such as health club memberships and storage facilities to aid in the debt relief effort. Direct music and video download sales have generally remained tax-free since their inception, partially due to laws prohibiting taxes on out-of-state sales; however, the new law would require that each album, song, or video bought by a New Jersey resident be subject to a 7 percent tax. Challenges to the new law have yet to be filed, according to Electronista.