Let the music play: NY State passes on download 'iTunes tax'

New York governor David Paterson and leaders of the state legislature stated on Wednesday that thanks to incoming federal stimulus money, the state will stand down on plans to "nuisance tax" a wide assortment of goods, including music, movie and ebook downloads. For now, anyway.

The proposed 2009-10 budget also included an extension of sales tax to cable and satellite TV and radio; like the 4% "digital property sales tax," that idea has been dropped. Other items from which the threat of new taxation has been lifted include non-diet soda, live theater, haircuts, and bowling. The NYS budget is due on April 1.