California Panel puts brakes on plan to tax downloads

A measure that could force consumers to pay sales tax on downloaded music, books, ring tones, games and movies was narrowly rejected by a California State Assembly panel Monday after strong opposition from companies that do business in Silicon Valley. AB 1956 failed in the Revenue and Taxation Committee when Assemblywoman Fiona Ma (D-San Francisco) voted "no" and Assemblywoman Mary Hayashi (D-Hayward) abstained. The measure drew four votes; five were needed for passage. Hoping to keep his revenue-raising measure alive, Assemblyman Charles Calderon (D-City of Industry), who chairs the committee, will be granted a "reconsideration" vote possibly as early as next week.
http://www.siliconvalley.com/ci_8929248