22 Feb State to start charging sales tax on online digital purchases Oct. 1
Madison – Wisconsin will collect sales taxes on Internet downloads of music, games, books, ring tones and other video entertainment – a decision that angers some who will find the 5% tax added to their credit-card bills after Oct. 1.
On Thursday, Gov. Jim Doyle signed into law a package of tax-law changes that included extending the sales tax to so-called digital downloads.
The District of Columbia and 15 states have similar laws, although none of those states borders Wisconsin.
The change will require vendors to add the tax when the product is sold and remit it to the state treasury. One of the most popular sellers of songs, CDs and other digital products, iTunes, already collects sales taxes on those sales for states that charge it, said Susan Lundgren, a spokeswoman for Apple.
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