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California Bill Seeks To Tax Downloads - 04-10-2008

California Assemblyman Charles Calderon (D-City of Industry) wants to impose a sales tax on music and movies downloaded from the Internet in order to ease the states budget shortfall.

Calderon's proposal would raise the cost of an iTunes download from 99 cents to $1.07. He believes the Board of Equalization should update a 75-year-old law that authorizes sales-tax collections on tangible personal property. Music and movies downloaded off the Internet are not considered tangible goods.

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