New Tax on Digital Media Downloads Part of “Technical Corrections” Legislation Coming from Bredesen’s Revenue Commissioner

NASHVILLE, TN - The Tennessee Republican Party today urges voters speak out against Gov. Bredesen’s plan to tax digital downloads such as songs from iTunes, a new tax that Bredesen’s people running the Department of Revenue are considering including in the “technical corrections” legislation it submits annually to the legislature.

According to a summary of the legislation provided by Nashville’s Waller Lansden law firm, which is monitoring the legislation for its impact on the business community, the Bredesen administration is considering a “Digital Products/iPOD Tax,” which would be a wholly new tax on a class of products that have never before been subject to the sales tax in Tennessee.

According to the law firm’s summary, “The Bill contains sweeping legislation that would subject downloaded sales of digital media, including music videos, motion pictures, news and entertainment programs, music, ringtones, electronic books, etc. to the retail sales tax. Under current law digitally delivered goods are not taxable unless delivered in a tangible form.”

“Most states do not tax digitally-delivered products,” said Bill Hobbs, communications director for the Tennessee Republican Party. “Tennessee shouldn’t either and state government’s current fiscal crisis should not be used by the Bredesen administration as an excuse to hit the people of Tennessee with a new tax that could cost them tens or even hundreds of millions of dollars.”

Voters should make their voices heard by contacting the Governor’s Office by calling 615.741.2001; sending a fax to 615.532.9711 or emailing phil.bredesen@state.tn.us.