Doyle says he’ll try again for streamlined sales tax; includes I-Pod tax

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Gov. Jim Doyle says he’ll try again this year to have Wisconsin join a national group that decides what should and shouldn’t be included under the sales tax.

It’s one of those moves Republicans have blocked for years, but they can’t block it this year because Democrats now control both houses of the Legislature.

Among other things, the so-called “streamlined” sales tax rules would apply the 5 percent tax to specialized business computer software. That alone would give the state another $28 million a year.

Last year, the Supreme Court said the state went against its own laws by charging the sales tax to specialized business software.

The Menasha Corporation won a lawsuit, and the state figured it would have to refund $265 million to businesses which paid the tax.

More than 400 companies were given six months to file claims, but only about a quarter of them did so.

And officials now expect to give about $123 million in sales tax refunds.

Also, Doyle says he’ll try again to tax items sold over the Internet, including music downloads, which Republicans call the “I-Pod tax.”

The governor says it’s unfair for brick and mortar stores to charge sales taxes, while retailers online don’t. Those changes would bring in almost $3 million per year.

Tags: wisconsinn news, ipod tax, streamlined, sales, tas