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Songs, Books Downloaded Online To Be Taxed In Ohio

Downloading the latest pop music hit or best-selling crime novel could cost more next year in Ohio. That's because tax changes added to the state budget would boost the state sales tax and apply it to digital products, such as MP3s, e-books and videos bought on the Internet. If it's approved by the Legislature this week, tablet readers and music listeners would find a 5.75 percent state sales tax tacked on to their items Jan. 1. Netflix subscriptions would be taxed, but not video programming that's part of a cable service package. The proposal would also eliminate a sales tax exemption for magazine subscriptions beginning Sept. 1. Republican leaders see the move as "equalizing" how the state sales tax is applied, because hard copies bought in stores are already taxed.