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New York dropping its plans to tax DLC photo

Back in December, Governer Paterson had unveiled a new tax proposal that had a section entitled "Close Digital Property Taxation Loophole" in it. Detailed in there were plans for taxing a number of digitally distributed items, ranging from iTunes songs to Halo map packs in order to "achieve tax parity."

The tax would mainly affect those buying items on the Wii or 360, as the PlayStation Network already charges sales tax for their purchases. The new budget was going to try and help close New York's defecit by about $1.3 billion dollars, according to the governer. But, New Yorkers almost universally rejected it, saying that it was inconvenient and frustrating.

The reason for the proposition dropping was because of the recently passed stimulus bill. Not only did it supply a lot of money, part of the requirement was that the state try and help encourage people to spend money. As such, deciding not to tax DLC and all the other items entailed in the section was supposed to help encourage spending for consumers.

I'm glad to see that the bill has saved a lot of people money, because adding another 8% or so to the general cost of DLC would make it painful for some people, I can attest to that.

[Via Kotaku]

 








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16 comments | showing # 1 to 16
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BlackFreefall's Avatar - Comment posted on 03/13/2009 08:23
BlackFreefall
I'm glad that he is doing something right or they will be a recall for him.
fetusmilk's Avatar - Comment posted on 03/13/2009 08:42
fetusmilk
doesnt the 360 charge taxes when you "buy" the microsoft points?.
they already tax my car
tax my house
tax my gas
tax my sales
tax my taxes
what else is next?
internet usage tax? oh wait that already happens.

the man - "just put taxes on everything. they'll have to pay it anyway because we say so, and if you tax things people need to LIVE they HAVE to pay it"
Aaron Mxy Yost's Avatar - Comment posted on 03/13/2009 08:48
Aaron Mxy Yost
I'm glad he could see that the citizens of NY weren't going to stand for this legislation before he blindly went ahead with it.
Just Another Juke's Avatar - Comment posted on 03/13/2009 09:00
Just Another Juke
Bro I'm so glad this didn't go through being that i live in NYC everything here is f'n expensive as it is now its insane
don't tax my games that's all i have now =[
Cynical Gamer's Avatar - Comment posted on 03/13/2009 09:59
Cynical Gamer
Now all he has to do is drop the amazon tax.
hpv's Avatar - Comment posted on 03/13/2009 10:38
hpv
Sony already collects tax on DLC purchases if you set your state to Washington. I assume the same thing happens in other sales tax states?
ShawnKelfonne's Avatar - Comment posted on 03/13/2009 10:49
ShawnKelfonne
360 and Wii purchases ARE already taxed though. I don't know where he thought he was going to be able to tax them again, but I already pay tax when I buy Nintendo Points, or turn my money into Microsoft Moon Money.
hitnrun's Avatar - Comment posted on 03/13/2009 11:12
hitnrun
Microsoft Points in particular are criminal, because they don't translate into real dollars easily (on purpose). They're valued at 4 points to $5 and can only be bought electronically in inconvenient denominations like $12.50.

The only way to buy MS points in useful denominations is at the store, which is taxed.
Ascythopicism's Avatar - Comment posted on 03/13/2009 11:34
Ascythopicism
Ah! I see what you did there, Mxyzptlk! Oh wai-...

I know this is a gaming website... but to say people would be hurting if DLC was taxed 8%? I'm not saying I agree with his (now defunct) proposed tax increases on new items (DLC, soda, et cetera), or that I agree that more taxation is the way to go... But you should really stop trying to look at government and politics from a STRICTLY gaming-centric perspective.

"Mr. Patterson, we've run the numbers. The budget gap can only be closed with a tax increase. We can either cut back more aid to the school system, or tax luxury items such as online downloadable content and soft drinks."

"Bu-. But we need our Lost and the Damned DLC, damnit!."

(I know it ain't as simple as that. But what would you do in his situation?)
Black Nexus's Avatar - Comment posted on 03/13/2009 12:59
Black Nexus
Thank god they droped this , why is my state acting so ignorant at the moment. There isn'nt a damn thing here that isn't already over priced.
Sheir's Avatar - Comment posted on 03/13/2009 13:52
Sheir
Now they just need to stop taxing the shit out of my tuition. My school president hosted a protest yesterday.
Chronic Logic's Avatar - Comment posted on 03/13/2009 14:01
Chronic Logic
digital goods being taxed? Talk about outrageous.
Darren Nakamura's Avatar - Comment posted on 03/13/2009 16:55
Darren Nakamura
Aren't Wii Points and MS Points taxed anyway?
Syn's Avatar - Comment posted on 03/13/2009 17:10
Syn
It seems that Obama is considering legalizing marijuana and taxing that and all the products it can be used to make, and THAT will be a giant step in the right direction. As opposed to the "lets put a tax on taxed stuff!" idea
Naim Master's Avatar - Comment posted on 03/14/2009 00:03
Naim Master
@Syn

Legalizzing mariajuana isn't a step in a right direction , even though the governement gets the taxes and there is a smaller probability of your weed being diluted in shit ; but with it legalized a lot more people are going to use it , and later fo gor heavyer drugs like crack ...
Syn's Avatar - Comment posted on 03/14/2009 02:26
Syn
@Naim Master: The way I see it, if that poor fool wants to do crack, let 'em. Hopefully they kill themselves. We could use less stupid people in the world.

And before you say it, I know there would be a considerable amount of collateral damage. But that's a loss I'm willing to accept.
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