Earlier today at a legislative hearing in Raleigh, NC held by the Revenue Laws Study Committee, North Carolina state representative discussed and circulated a draft bill [Bill Draft 2009-SVxz-5 [v.7]] that proposes to “modernize” the sales and use tax statues in North Carolina by treating music, movies, books, and computer software that are delivered electronically the same as those that are purchased in a tangible medium and by revising the 'mail order' sales tax provisions to include specific references to internet sales.
Here's the latest draft we received from somone in attendance today. We anticipate more details from the hearing will be posted by the committee staff online here.
To share your opinion on this proposal, please express your constructive thoughts to Senator Dan Clodfelter and Representative Paul Leubke (co-chairs of the Revenue Laws committee that produced this draft legislation on digital taxation): Paul.Luebke@ncleg.net and Danielc@ncleg.net . If you are a NC resident, you can also find the contact information for your House and Senate members here. For a general email address for the committee to share your comments or questions, email revenuelaws@ncleg.net.
Stay tuned for my personal thoughts why this proposal might need a little more work.
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Aside from labeling the proposed legislation as an “unconstitutional tax collection scheme,” there is little indication of what has motivated the online sales behemoth to act.
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NC also recently approved a tax on intangible items such as digital downloads so I'd expect to seem them take aim at iTunes as well.
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