Some poking around in the draft of the c…

Some poking around in the draft of the current budget (I read State budgets on my lunch break, what has my life come to?) finds on Page 6, line 41, that North Carolina expects to tax $13.2M in Fiscal Year 2009-2010, and $17.8M in 2010-2011 from “Sales Tax on Digital/Click-Throughs”.

I’m guessing Amazon wasn’t even paying out $13 million bucks to NC residents (the margins for referrals can’t be all that large), so this would mean a huge increase in expense for no benefit. Makes a lot of sense from Amazon’s perspective.

New things getting taxed at the “General Rate” of 5%:

  • Things that formerly were not taxed because they were “delivered or accessed electronically”:
    • “audio work” (MP3 download)
    • “audiovisual work” (movie download)
    • “book”
  • “service contract and from repair, maintenance, and installation services”
  • “Admission to a live performance or other live event of any kind.” (Concerts)
    • With specific exception for non-profits (they won’t be cutting in RLT’s bottom line, hopefully)
    • With specific exception for “An event at an elementary or secondary school.” (lol)
  • “Admission to a movie or other audiovisual work.” (Movies just got more expensive)
  • “air, surface, or combined courier delivery services of parcels” (Amazon’s getting taxed twice, now)

There’s also what I call the Hoe-down exception for “A farm-related entertainment activity offered on land used for bona fide farm purposes as defined in G.S. 153A-340.”