Residents in the state of Connecticut may soon have to pay more money to download digital products such as iTunes songs, an apps or e-books.
According to BusinessWeek, some Democratic lawmakers in the state are proposing raising the tax rate to match the state's 6.35 percent sales tax. Currently, the sales tax on digital products is just one percent.
According to Yahoo, Rep. Patricia Widlitz, D-Guilford, who is the co-chair of the Finance Revenue and Bonding Committee, included the proposed provision in the committee's tax package, in what is being described as a way to make brick-and-mortar retailers more competitive. She said that the tax structure needs to be looked at as the way of doing business changes.
According to NECN, opponents of the proposal argue that the state government should spend within its means instead of placing a penalty on production of goods that grow the economy.
The proposal that the state has made comes just as Congress considers passing the Marketplace Fairness Act, which will expand states' tax collection authority.