UPDATE: April 25, 2008
The Bredesen administration’s effort to reach further into your pocket by levying new taxes on digital products you purchase online is already under way. The administration began levying a sales tax on digital music downloads - songs for your iPod or Mp3 music player - on January 1, 2008.
But that may be only the beginning. Soon, Tennesseans may be required to pay new taxes on all sorts of digitally deliver products that are currently not taxed. According to an analysis by business tax law experts of draft legislation being prepared by Bredesen’s Revenue Department, the administration is looking at extending sales taxes to a long list of digitally-delivered products, a category which conceivably could include everything from subscriptions to online publications to software purchased online and delivered via downloading.
“While the administration already has levied news taxes on songs for your iPod, there are many other digital media products that aren’t yet taxed in Tennessee, but it appears Gov. Bredesen wants to change that,” said Bill Hobbs communications director for the Tennessee Republican Party. “Tennessee doesn’t tax you when you buy a newspaper, but soon you may be taxed if you purchase a news article online.”
Democrat Gov. Phil Bredesen’s administration is looking to increase the taxes on average Tennesseans while making cuts to teachers’ pay raises and, despite a $500 million revenue deficit, insisting on building his underground entertainment hall for the state’s monied elites, a project that increased the cost to taxpayers for the renovation of the governor’s mansion by more than $8 million.


