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Connecticut wants to levy a sales tax on app downloads in its turn

Posted: , by Daniel P.

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Connecticut wants to levy a sales tax on app downloads in its turn
Connecticut's sales tax rate is 6.35% and the cash-strapped state wants to levy it against your digital downloads, too, such as music, E-books and, gasp... smartphone apps.

A bill introduced by the General Assembly's finance, revenue and bonding committee is supposedly aiming to level the playing field for retailers with physical presence, but, considering what an E-book costs compared to its paper edition, it looks like just an initiative to find another source of tax revenue for the state's coffers.

Gov. Dannel P. Malloy is against the digital downloads tax legislation, however a state tax attorney says “The taxation of electronic goods and services is probably the fastest-growing new tax that's been imposed in the last five years”, and 25 states have already implemented it.

Public hearing on the issue will be held tomorrow 10am at at the Legislative Office Building in Hartford, Room 2E, so shout out if you live in Connecticut and don't want to pay 6.35% on top of your next Mighty Eagle purchase, when you get stuck in an Angry Birds level. It's petty of them to ask you, we know.

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posted on 15 Mar 2012, 10:37 1

1. c.hack (Posts: 501; Member since: 09 Dec 2009)


I used to work for the State of CT. I loved the 35 hour work week.

posted on 15 Mar 2012, 11:42 3

2. SuperAndroidEvo (Posts: 3966; Member since: 15 Apr 2011)


Ohh, I thought it was known as the great state to Patheticut.

posted on 15 Mar 2012, 15:06

10. atheisticemetic (Posts: 377; Member since: 18 Dec 2011)


lol awesome

posted on 15 Mar 2012, 12:33

3. StanleyG88 (Posts: 76; Member since: 15 Mar 2012)


If I downloaded eStuff on my smartphone, how do they know do they know if I was in the state or not? Even if the cell tower was in CN, I could have been in an adjacent state. It will be up to them to PROVE I was in their state when I made a purchase with my phone.

posted on 15 Mar 2012, 12:39

4. androidsbiggestfan (Posts: 76; Member since: 09 Aug 2011)


They would have to do it by GPS location I would think.

posted on 15 Mar 2012, 13:16 1

6. downphoenix (Posts: 2299; Member since: 19 Jun 2010)


Sales tax should be abolished if you ask me. Its a tax on middle/lower class people moreso than the rich. I rather would just pay higher income taxes and everyone else do the same, so that we are paying proportionately what we are supposed to.

posted on 15 Mar 2012, 13:38 2

7. c.hack (Posts: 501; Member since: 09 Dec 2009)


That's right - penalize people for working.

posted on 15 Mar 2012, 19:39 1

12. rfrapp (Posts: 77; Member since: 10 Jun 2010)


You realize that paying higher income taxes would also effect poor people too, right? How about we have less taxes, then everyone can go out and spend more money, which will then help out the economy.

posted on 16 Mar 2012, 07:12

16. remixfa (Posts: 13903; Member since: 19 Dec 2008)


wow, way to penalize people that work. your on the exact opposite. Sales taxes are the only thing that doesnt punish people. income taxes are designed to socialize the system and "spread the wealth" If we were on a sales tax only system, there would be no income tax or corperate tax, which would bring millions of jobs back to the US from the tax savings.

The rich would pay more in sales tax then they do currently in income tax since there would be no tax breaks or loop holes. When they go buy a ferrarri or new mansion or yacht, they would pay that sales tax on it.

The best part.. if you went to a retail sales tax only system, you would get rid of all the embedded taxes in every product we buy, before WE get taxed on it. The cost of goods would go down about 20% automatically. A 23% sales tax would be enough to fund the government at its current levels, so your only seeing a 3% sales tax. And if you dont tax the basic nesessities like food and cheap clothing, the poor will still not pay any taxes, unless they decide to go buy flat screens and cars (like most welfare people)

The Fairtax, you should look it up and educate yourself.

posted on 15 Mar 2012, 13:03

5. PAPINYC (Posts: 2268; Member since: 30 Jul 2011)


I don't live in Connecticut (although, I'm too close for comfort) but, a tax on digital downloads would make me move out-of-state if I did. Again, don't we pay enough in FCC charges, surcharges and government taxes as it is to support Public Assistance and Welfare Programs?

I hope Michael Bloomberg and Charles Schumer don't get the bright idea to follow in Connecticut's footsteps; they are always looking for Revenue Streams.

I say get rid of any politicians looking to increase taxes.

posted on 15 Mar 2012, 13:45

8. skymitch89 (Posts: 1053; Member since: 05 Nov 2010)


That's just a horrible idea. I could see if they were to go into a store or something to buy a special code that would allow them to download special apps or ebooks or something like that, but to charge for digital downloads off the internet? That's just crazy!! That would in turn make a $.99 app from the App Store would be more like $1.05 after taxes are imposed. I'm not really sure how Apple would feel about someone trying to tamper with the prices within one of their products.

posted on 15 Mar 2012, 14:38 1

9. iamcc (Posts: 1319; Member since: 07 Oct 2011)


Two words:

They would.

posted on 15 Mar 2012, 18:50 2

11. JunitoNH (Posts: 873; Member since: 15 Feb 2012)


Consider this, Ct is one of the most over taxed state in the union.

1. one of the highest gasoline tax .49/ per gallon
2. highest property tax
3. sales tax 6.35%
4. we have a state income tax
5. high property tax, including auto taxes
6. If you live in the city, you have to pay a poop tax to water authority
7. high utility cost - e.g. average electric bill about $229/month

I can go on, but anyway, not surprised they are proposing this. Next oxygen taxation.

posted on 15 Mar 2012, 23:27

13. TKFox007 (Posts: 303; Member since: 02 Nov 2010)


I hear you on that, I live in this God forsaken state too.

posted on 15 Mar 2012, 23:28

14. TKFox007 (Posts: 303; Member since: 02 Nov 2010)


They would go by the the zip code your credit card is attached too

posted on 16 Mar 2012, 06:50

15. tward291 (Posts: 559; Member since: 14 Feb 2012)


it was only a matter of time

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