Tax on iTunes Downloads in Wis. Gov's Budget Plan

Wisconsin Governor Jim Doyle has proposed a five percent sales tax on iTunes and other digital downloads as an option to cut into the state's budget shortfall.

Doyle wants to impose the sales tax on downloads starting October 1st.

The tax would apply to more than music, with movies, ringtones, electronic books and greeting cards all eligible for the download sales tax.

Doyle says it would generate $11 million over two years.

Wisconsin faces a nearly $600 million shortfall in the state budget that ends June 30 and a $5.7 billion deficit in the next state budget.