Alabama May Tax Downloads

Governor Robert Bentley is looking for more sources of state revenue and one agency may have found one. The Alabama Department of Revenue is considering a new rule requiring companies that offer digital streaming services to pay a four percent state tax. The fee would apply to movies, television programs and music. The revenue department says it's an attempt to update tax code for the digital era. Governor Bentley wants new taxes to plug a half billion dollar hole in the state budget. Opponents say the rule overreaches the bounds of current tax law.