Saturday, April 15, 2006

Remember to Do A Last Minute Scan

Remember to do a last minute scan of your taxes. After all if you live in one of these fifteen states (below) or the District of Columbia, you need to include your iTunes tax (from Prof. Caron's TaxProf Blog)! Remember Dad, that could include Mom!

This makes me wonder how the logistics of buying iTunes tunes works for tax purposes. Say I take my laptop to Arizona...do I owe iTunes taxes? Or is based on state of residency? But that wouldn't work if I were buying something tangible, like the actual CD the tune was on, because then I'd be paying taxes in Arizona, not Minnesota. But if the reverse is true and it works just like regular sales tax, and you pay based on where you were when you downloaded, then shouldn't I save up my list of tunes and download them when I'm in a state that doesn't specify the tax? And what are the implications for this on sales taxes long term? Will all my sales taxes start being submitted back to my state of residency? Seems like that would annoy the heck of states which deal with tourism and would directly benefit states with a higher standard of living. I guess that's why I follow Caron's blog - the answers to my important amateur tax questions...and video of DEA agents shooting themselves in the foot.
  • Alabama
  • Arizona
  • Colorado
  • Hawaii
  • Idaho
  • Indiana
  • Kentucky
  • Louisiana
  • Maine
  • New Mexico
  • South Dakota
  • Texas
  • Utah
  • Washington
  • West Virginia
  • Washington, D.C.

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