NC Panel Proposes Tax For Electronic Transactions

North Carolina could soon be taxing people who download music, ringtones, movies and software if a legislative committee gets its wish.

The Revenue Laws Study Committee recommended Tuesday to the full
Legislature that the state and local sales tax be applied to these
relatively new electronic transactions.

Current law generally doesn't require the tax on these products
because they're not considered "tangible personal property" or a
service.

An analysis of the proposal says the state could collect $8 million and local governments almost $4 million next year if changes were made.

The combined sales tax rate generally ranges from 6.75 percent to 7.25 percent, depending on the county.

The General Assembly reconvenes Wednesday.


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