The Iowa
State of
Eighty-Second General Assembly
STATEHOUSE
Des Moines, Iowa 50319
For Immediate Release: Thursday, April 19, 2007
Contact: Kimberly Steenhoek, 515-281-6571
Senate Democrats
Approve iTunes Tax
DES MOINES – Democrats in
the Iowa Senate today voted for a bill, Senate File 596, that imposes a tax on
downloaded videos, music, ring tones and books.
“The Senate Democrats lust
for new revenue knows no limits,” said Senate Republican Leader Mary Lundby
(R-Marion). “Now they are going after
Iowans’ iTunes and ring tones.”
The bill passed the Senate
on a vote of 29 to 20 with Democratic senators voting for the legislation and
all Republicans senators voting against it.
“The digital download market
is growing by leaps and bounds and Democrats want to get their hands on their piece
of the pie,” said Lundby.
Under the bill, each digital
download will be subject to the five-cent state sales and use tax.
“Not only is the legislation
greedy, it’s unrealistic,” said Lundby.
“If you are downloading ring tones while on vacation out of state, this
bill expects you to fill out a form claiming the downloads so you can pay the
government when you return. Is that a feasible plan? I don’t think so.”
The new tax is expected to
generate more than $4 million in the 2008 fiscal year that begins July 1 and
more than $5 million in FY2009.
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