Another Music Download, Another Tax

Have I told you I live in the state with the highest property taxes? Taxes are high throughout the New York metropolitan region, but New Jersey wins the distinction of having the highest. And our sales tax rose 1 percent to 7 percent in the summer after the government shut down for a few days over the July 4^th weekend.

This week New Jerseyans learned nothing is sacred in a state with a $4.5 billion deficit. As of Sunday, my state began taxing iTunes and other music and video downloads. Our finances are a mess, so Gov. Jon Corzine's budget included levies on some other things Jerseyans seem to love: tanning, tattoos, magazines, and newspapers are just a few. (At least clothes are still untaxed, this year anyway.)

That means when I downloaded the last episode of "The Office" tonight, the one I forgot to record last week, I'll pay $2.13 instead of the $1.99 we've grown accustomed to.

New Jersey joins 15 other states and the District of Columbia that can tax downloads. Look for more to follow suit. As our entertainment buying habits change, states are eyeing a new revenue stream that will flow from the youngest shoppers to the oldest taxpayers. Everyone loves movies and music, and as we move into download mode, states will want a cut.

None of this comes as a surprise, of course, just a disappointment.

Does your state tax downloads?