Legally, a sale is a sale. There are a handful of things that are exempt from sales tax, but that’s a pretty small list. Basic foodstuffs, mostly.
There was a time (depending on your state of residence) when services (labor only) weren’t subject to sales tax. If I came to your house and showed you how to use Excel and Access, and billed you $250.00 for the session, it wasn’t subject to sales tax. If I provided Microsoft Office, installed it, and taught you how to use it, and billed you $750.00 for the whole package, you paid sales tax on the entire amount. (Again, depending on the state you’re in; some states only required sales tax on the software, not the installation and instruction.)
Now it’s more common for sales tax to even be applied to purely labor costs where there is no physical product provided.
Nope they didn’t warn me at all. if i would have known… i wouldn’t have allowed it.
Dude it should be bases on the company not state… that means some people are paying 16.08 while others are paying 14.99… wtf.
yeah. we were on the honor system here in my state until Blizzard started collecting it this year.
I always over estimate so if the jerktard tax man does come back on me they have nothing to accuse me of.
I think it’d kinda balance out paying the sub for 6 months at a time so youre paying less than the $15 and the taxes might bring it back up to somewhere around that number.
My next sub fee isnt due until May 7th.
Texas has a sales tax, just not an income taxes.They’re just like Florida. Although Texas, unlike Florida, charges sales tax on labor, and services.
That’s because the Supreme Court revisited the Quill v North Dakota decision from 1992. That case set a standard that a company had to have a physical presence, or nexus, in the state in order to be required by a state to collect sales.
Over the years states have tried many things to get online companies to either collect tax or to force them to turn over sales records for residents. Amazon has staunchly defended its customers in court where as some companies like Newegg threw their customers under the bus.
New York passed a law defining click-through things like Amazon Associates as a nexus. The law was challenged and upheld by the New York State Supreme Court. The Supreme Court denied certriori on appeal so the law stood.
The “honor system” as you put it is actually a parallel tax called a Use Tax. This kicks in whenever you purchase something that would normally be taxed but is not such as Amazon purchases back in the day. The rate is identical to sales tax and only applies to things that would normally be taxable in your state but you did not pay any sales tax to either your state or the state in which it was purchased.
South Dakota v Wayfair reversed the Quill decision which mandated a physical presence to be a nexus and allowed for a substantial online presence to also count.
You say that as if you or Blizzard had any choice. You would have had to cancel your subscription.
This is how it’s always been. If I go to the bookstore and buy a $9.99 book, in my state that will cost me $10.59 for the 6% sales tax. That book would cost me just the MSRP of $9.99 in Oregon, Alaska, New Hampshire and Montana. In Colorado it would cost me $10.28. I go over to Illinois and I now pay $10.61 for that same book (6.25%). If I buy that book in Chicago, it’s going to go up to $11.01 to cover both State and Local sales tax.
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It’s been almost a month people and your bringing this back up?
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