The proposed “iTunes tax” in the budget for New York state has been dropped by Gov. David Patterson (D-N.Y.). The sales tax would have been imposed on digital downloads as a way to raise funds in and close a budget gap. However, the tax was left out of the state budget that passed last week.
The American Association For Independent Music (A2IM) applauded the Governor and the state for not imposing the tax on digital music.
“Given the current transformative period to digital in the music industry and the current economy, that the last thing our community needs is an increase in music prices due to taxes being imposed on consumers,” A2IM President Rich Bengloff said.