This blog printed on 100% recycled electrons.
Well, consider this Tennessee blogpost from Jan 2007*:
Tax porn not corn
Yes, I stole the title from the Tom Humphrey and Brad Williams article but it was too good to pass up. For those who did not read the article it is about a tax swap that I am going to propose. The swap would be to remove or significantly remove the sales tax on food and replace it on the porn/sex industry. The items I am considering are magazine's, videos (online, cable purchase or hard copy) or items that you have to be over the age of 18 to view or purchase due to sexual content. R rated movies will not be included. Strip club fees, purchases of services at strip clubs and Escort services will also be included.
The porn/sex industry is very powerful and a multi billion dollar industry. Just how big it is in Tennessee will be calculated in the bill and used to lower or remove the tax on food...
I wait to hear the arguments on how it is more important to save the huge profits of the thriving porn industry and keep taxing food then it is to help put food in the mouths of poor families that are struggling to make ends meet.
The source: Stacey Campfield, of Knoxville, Tennessee. That's Representative Stacey Campfield, Republican member of the Tennessee House. Excellent argument from a conservative Republican that there are better ways to generate revenue than taxing working folks for eating.
Let's see, we have until Wednesday to submit new bills? Russ, want to help me out on this one?
*Update 17:55: Oh! I'm sorry -- I goofed up when I read that post. It was a legislative proposal in 2007, not this year! It doesn't appear to have passed in Tennessee, but Rep. Campfield's blog links to a number of articles and pieces of similar porn legislation in other states, including the "Texas Pole Tax," a $5 tax on strip-club admission! It's expected to generate $40 million a year. That could pay a lot of teachers, or maybe even recapitalize the REDI fund!
Would this apply to porn and sex toys purchased over the internet? The reason why I ask is that when the cigarette tax was put into place, a friend of mine purchases her cigarettes over the internet and has free shipping and no cigarette tax.
ReplyDeleteTaxing Internet sales is really tricky. Just ask Mike Rounds -- he promised an Internet tax would do wonders for our state budget, but he hasn't made one happen yet in six years.
ReplyDeleteAs I understand it, our sales tax statute makes no distinction between in-store and online purchases: if you buy and receive merchandise in SD, you have to pay sales tax (and, in your friend's case, the cigarette tax). The state just doesn't have any enforcement mechanism for collecting from folks like your friend: Pierre expects your friend will follow the honor system, calculate the tax, and send it in herself.
So, here's a question for you. I recently purchased a computer on-line and was charged 4% South Dakota State Sales Tax. Is there any way to find out if Dell actually paid the tax to our state, or if they simply kept the money? Maybe Department of Revenue has info or can track what Dell sends the state each month.
ReplyDeleteGood question, Anon! I would assume that if Dell has remitted any tax to SD, the Department of Revenue and Regulation would have a record of it. I don't see any itemized list of sales tax payers on the DRR stats page, but hey -- why not give DRR a call? They have an 800 number: 1-800-829-9188 for all business tax questions (that includes sales tax).
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