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Digital Downloads: The Department's Bill establishes new provisions for application of the sales and use tax to digital downloads of songs, books and movies. Under the Bill, the retail sale, lease, licensing or use of the following three categories of digital downloads will specifically be subject to those new provisions as of January 1, 2009: (i) "Digital audio-visual works," including motion pictures, musical videos, news and entertainment programs and live events; (ii) "Digital audio works" including prerecorded or live songs, music, readings, speeches, ringtones or other sound recording; and (iii) "Digital books," meaning works generally recognized as "books" which are transferred electronically. The Bill carves out from taxation subscriptions to satellite radio services, newspapers, magazines, periodicals, chat rooms discussions and blogs. Please note: The Department announced, concurrent with debate regarding the Bill, that many if not all of such downloads are considered currently to be taxable, and that these new provisions are simply clarifications of existing law. Some Tennesseans have already been paying tax to vendors of digital downloads. 2b1af7f3a8