Mar 28, 2008

SEA 233 - Streamlined Sales Tax Conformity (Music Downloads)

Synopsis: Streamlined sales tax conformity. Adds definitions of the following terms from the Streamlined Sales and Use Tax Agreement (SSUTA) to the sales and use tax statutes: (1) "digital audiovisual works"; (2) "digital audio works"; (3) "digital books"; and (4) "specified digital products". Amends the definition of "durable medical equipment" to conform with SSUTA. Extends until January 1, 2010, the date when sales of floral products will be sourced to the location of the floral business that takes a floral order from a purchaser, to conform with SSUTA. Provides that a person who transfers specified digital products to an end user with a grant of permanent use is a retail merchant making a retail transaction.

This is a tough one presented by Big-Government Senator Luke Kenley. Libertarians generally favor consumption fees and consumption taxes -- the "pay as you go" philosophy. However, with the changes to Indiana Code allowing for the State taxation of music and digital downloads from the internet, the State enters into murky waters of what overall impact will this have on small business as we move forward.

Will graphics designers in Illinois selling to a customer in Indiana now have to pay Indiana sales tax on their products? Is that next? What about your traditional manufacturers doing business across state borders? Is it fair to further enslave small business as the collecting agents of government revenues with no compensation to them as that agent? Is it enforceable even?

Another problem with this? Sen. Kenley wants our money so badly and so quickly, he made sure this was considered an "emergency act" to take effect immediately upon receiving Governor Daniels' signature. Mr. Kenley, how exactly is this an emergency?

Senate passes 46-0; House passes 80-11. Voting "no" in the House? Behning, Dvorak, Koch, Ruppel, Brown (T), Fry, Murphy, Wolkins, Buck, Grubb, and Noe. (Have we mentioned before Rep. Wolkins is one of the good guys?)

No comments:

Site Meter