The state is staring at a $15.4 billion deficit so Gov. David Paterson is proposing an "iPod tax" as part of his state budget. Under the plan, New York would charge state and local sales tax for "digitally delivered entertainment services," according to a story in The New York Daily News.
That includes e-books downloaded to Amazon's Kindle as well as for the digital songs obtained from Apple's iTunes. If the state legislature passes the governor's plan, the price of digital content for New Yorkers is sure to go up. The tax would also apply to sporting events, movie tickets, taxis, and satellite TV and radio.