The Spectator is reporting that Wisconsin Governor Jim Doyle has signed into law a five percent sales tax on downloadable items. The taxed digital goods include music, ringtones and video game downloads. The measure was part of a larger bill designed to narrow a $6 billion dollar state budget deficit and will be effective October 1, 2009.

"One of the problems we have with the tax code is that it doesn't grow with the economy," said state senator Kathleen Vinehout (D-Alma). "Right now we're moving into a whole new world of products that are transmitted over the Internet. It's part of keeping up with the times - part of modernizing our tax code."

State Representative Scott Suder (R-Abbotsford) disagreed with the positive assessment. "It's basically taxing students to fill in the Doyle budget shortfall," Suder said, "and I think that's unfair."

Legislators hope that the new sales tax will raise $10.9 million for the state between 2009 and 2011.

Thanks to GamePolitics for the tip.