If you're an avid iTunes user, turn down the iPod and tune in for this story. Right now there’s no sales tax on songs, movies or other digital media you download. But one lawmaker’s looking to change that. From Sacramento, Marianne Russ explains.
Democratic Assemblyman Charles Calderon says California tax law is lagging behind the changing technology and the new economy.
Calderon : You can buy a CD from Wal-Mart and you pay tax on it, but if you go to the iTunes and you download it, you don’t pay any tax.
He’s pushing a bill that would require the State Board of Equalization to look into the economic impact of collecting such a tax -- and draft regulation to do so.
But Republican Assemblyman Guy Houston says it could cause people to make fewer digital media purchases.
Houston : It’s an additional tax and that is going to discourage innovation, discourage commerce in California.
The bill does not require Republican votes. But it would require Governor Schwarzenegger’s signature -- and he's been opposed to tax increases.
