New Jersey launches iTunes tax

Beginning this week, New Jersey residents purchasing music and videos from services like Apple's iTunes and rival digital downloads e-tailers encountered something they'd previously only found at bricks-and-mortar counterparts: a sales tax.

Democratic Governor Jon Corzine proposed the sales tax expansion earlier this spring to help the state to recover from a $4.5 billion budget deficit, an ABC News affiliate in New York reported recently on its Web site. The changes, along with a sales tax rate hike from 6 to 7 percent, took effect on Oct. 1.

According to a CNET special report completed in April, 15 states and the District of Columbia already included media downloads in their sales tax regimes, and a handful of others--New Jersey included--were contemplating similar moves.

Garden State officials didn't stop at downloaded music and videos for the newly taxed set. New Jerseyans must now pay taxes on data processing; tanning, massage and tattooing services; limousines; and flooring and carpeting installation, among other things.

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