Digital Downloads & Other Curiosities

The House Finance Committee came up with a curious (and thankfully short) list of new items to apply the state's seven-percent sales to, like OTC drugs, sightseeing tours, insurance proceeds and digital downloads. I understand the OTC drugs, which includes cough medicine and antihistimenes, and the sightseeing tours (ok 7% on top of your ticket price to tour the Marble House in Newport), but insurance proceeds and digital downloads? What do they mean by insurance proceeds and espcially digital downloads. Regarding the downloads, that could potentially mean taxing lot of actions like software downloads, movies and online purchases. Many of us download something online every day. And just how does the state intend to capture the tax on such downloads?

We need more information and clarity on these items. They represent anticipated new revenue totaling $17 million a year.