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Old Jul 7, 2004, 07:54 AM   #1
ToastCabbit
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Exclamation Sales Tax in iTMS??

Hey, all. Wanted to know if anybody else has found this to be true. My boyfriend bought a music album from the iTunes music store yesterday and on his bill it said "Tax: $0.59". So he called them up to ask what was going on and they said that because of a new law that was passed yesterday, certain states are charging sales taxes for online music buying (or at least through Apple's iTMS)! This applies to Kentucky and Indiana. I don't know what other states are affected.

Anyone else heard of this? Somebody somewhere really snuck this one under the radar (or maybe I'm just not in the loop). But either way, I'm MAD!!!
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Old Jul 9, 2004, 10:15 PM   #2
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Anybody...? Hewwo...?
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Old Jul 9, 2004, 10:27 PM   #3
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Can't say if it's true or not. I live in MA, and have never been taxed. Yet.
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Old Jul 10, 2004, 01:11 AM   #4
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Damn, that sucks. Looks like CA's gonna be next. Man, they're doing just about anything to squeeze another penny outta your pocket, especially w/ the goal to 10 million promote going on atm. Greedy Bastards. They're gonna just treat it like the normal Apple online store where tax is applicable in every state (well, most of them anyway).
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Old Jul 10, 2004, 01:21 AM   #5
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For once an organization besides the RIAA is being complete greedy *******s toward the music market. Nice change of pace.
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Old Jul 10, 2004, 12:09 PM   #6
Capt Underpants
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I liv in Texas, and have been taxes for the all of the eight months that I have been using iTMS.
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Old Jul 10, 2004, 01:02 PM   #7
applekid
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We're safe here in Maryland. But, legislation has reached the floor of Congress of few times to pass a law for sales tax on goods sold on the internet! Call your congressmen and tell them your thoughts!
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Old Jul 10, 2004, 04:01 PM   #8
slughead
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!! EVERY STATE WITH AN APPLE OFFICE IN IT THAT HAS A STATE SALES TAX WILL HAVE TO PAY SALES TAX ON ITUNES MUSIC !!

I live in phoenix, Apple has done business here for years and I pay sales tax on everything they sell, including iTunes music, even if I buy it online.

What Apple should do is make iTunes a totally separate entity and have it based out of New Hampshire so nobody except States with [unconstitutional] intrastate import taxes will have to pay sales tax.

Down with the sales tax! http://lp.org
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Old Jul 10, 2004, 04:54 PM   #9
realityisterror
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good thing i don't live in kentucky anymore.... but i think it's really stupid, yet it does make sense...
if we don't buy out of a store, the gov't is losing money from us buying online....

and apple needs to pick and move to wyoming not new hampshire... nobody lives in wyoming....


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Old Jul 10, 2004, 06:41 PM   #10
Elan0204
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Quote:
Originally Posted by slughead
!! EVERY STATE WITH AN APPLE OFFICE IN IT THAT HAS A STATE SALES TAX WILL HAVE TO PAY SALES TAX ON ITUNES MUSIC !!
This is true. There is no "new law" that caused your boyfriend to have to pay sales tax. All purchases on iTMS are taxed if you live in a state with sales tax.

Quote:
Originally Posted by realityisterror
apple needs to pick and move to wyoming not new hampshire... nobody lives in wyoming....
The reason slughead suggested New Hampshire is because New Hampshire has NO sales tax. Wyoming actually has a 4% sales tax, so the people buying music who live Wyoming would be taxed. Under slughead's suggestion no one would have to pay tax when purchasing music from iTMS.
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Old Jul 10, 2004, 09:22 PM   #11
mkrishnan
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I have not paid taxes in Michigan or Florida to date...both states have sales tax and Apple presence (at least an Apple store). OTOH, Michigan has a use tax policy IIRC, which addresses sales taxes for net purchases. I haven't filed Florida taxes yet so I don't know.
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Old Jul 11, 2004, 12:11 AM   #12
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I just notic they are taxing us in texas. Now what ticks me off about the tax in texas is they are Taxing use about the states sells tax.


9.99 for an ablum .77 tax that is a 7.7% tax. That states Sales tax is 6.25% I about to say screw iTune back to Kazaa for me. it one thing to charge sales tax that not a big deal but when you charge more than the states sales tax now it states mattering.

I suggest everyone who getting tax check it against you states sales tax (but dont forget when you check it to take out your local sales tax. in texas that either 1% or 2% depending on factors) and we should not be paying the local city and county sales tax just the states sales tax.

Damn it apple FIX YOU SALES TAX AND GET IT RIGHT.
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Old Jul 14, 2004, 07:00 PM   #13
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Quote:
Originally Posted by Timelessblur
I just notic they are taxing us in texas. Now what ticks me off about the tax in texas is they are Taxing use about the states sells tax.


9.99 for an ablum .77 tax that is a 7.7% tax. That states Sales tax is 6.25% I about to say screw iTune back to Kazaa for me. it one thing to charge sales tax that not a big deal but when you charge more than the states sales tax now it states mattering.

I suggest everyone who getting tax check it against you states sales tax (but dont forget when you check it to take out your local sales tax. in texas that either 1% or 2% depending on factors) and we should not be paying the local city and county sales tax just the states sales tax.

Damn it apple FIX YOU SALES TAX AND GET IT RIGHT.
That's a good point...Are you sure there isn't a good reason for the discrepancy?

Oh, and another thing, please don't take offense...It makes it very difficult to read and understand a post (I had to read parts of yours a few times) when you leave out the word 'is' and 'am,' use 'you' instead of 'your,' use the wrong verb tense, and use the wrong plurality.

I'm sorry to single you out, but I had to mention it at some point. There are a number of people who are themselves precluding the communication of their messages by being a little bit careless with writing and typing.
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Old Jul 14, 2004, 07:14 PM   #14
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I want to know what the reason is. If it was 6.25% would be ok with it 7.25% (1% for city sales tax) or hell 8.25% (another 1% for county sales tax) but 7.7% just does add up for me because there is no way in this state you are going to get an odd ball number like that. There no way in my zip code you could explain that number.

By the looks of it it really messed up and I want apple to explain why it using 7.7% in the state because my city and county are not getting any of that money at that odd ball number. It just not adding up right. I want to know why they are using such an odd ball number. I dont want the BS that there is more than likely a perficly good reason that not answering anything. I want that reason and let me judge if it is a good reason or not for my self. I could easily write some code that would check your location to your local sales tax and charge the write admont it really not that hard.
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Old Jul 14, 2004, 07:31 PM   #15
daddy-mojo
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Arrow here ya go...taxable states.

Quote:
Originally Posted by ToastCabbit
Hey, all. Wanted to know if anybody else has found this to be true. My boyfriend bought a music album from the iTunes music store yesterday and on his bill it said "Tax: $0.59". So he called them up to ask what was going on and they said that because of a new law that was passed yesterday, certain states are charging sales taxes for online music buying (or at least through Apple's iTMS)! This applies to Kentucky and Indiana. I don't know what other states are affected.

Anyone else heard of this? Somebody somewhere really snuck this one under the radar (or maybe I'm just not in the loop). But either way, I'm MAD!!!
I live in CA and have never paid sales tax for ITMS songs....Apple Store Online, definitely sales tax. I probaby wouldn't buy as much if there was sales tax.

http://www.apple.com/support/itunes/purchase.html

Tax Questions
Applicable sales tax is charged for music download purchases where required by local law. The estimated tax noted on your Music Store invoice is estimated and may not reflect actual charges. When this page was last updated, the following states charged tax on music downloads: AL, AZ, CO, CT (1%), DC, HI, ID, IN, LA, ME, NM, ND, SD, TN, TX, UT, and WA.
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Old Jul 14, 2004, 09:35 PM   #16
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Quote:
Originally Posted by daddy-mojo
http://www.apple.com/support/itunes/purchase.html

Tax Questions
Applicable sales tax is charged for music download purchases where required by local law. The estimated tax noted on your Music Store invoice is estimated and may not reflect actual charges. When this page was last updated, the following states charged tax on music downloads: AL, AZ, CO, CT (1%), DC, HI, ID, IN, LA, ME, NM, ND, SD, TN, TX, UT, and WA.
Good find!! I'm certain when iTMS came out that tax was charged in all states where Apple had a presence (or at the very least it was charged in IL, and you say you were not charge in CA). I suppose this means that what the original poster was told by the Apple rep they spoke to is true, that there must have been new laws passed to specifically address music download stores. I noticed that IL is NOT on the list, although when iTMS first came out I was charged sales tax. I haven't made a purchase in a long time, but I guess I shouldn't be charged tax anymore.

Timelessblur, in your original post you said you were charged $0.59 tax on $9.99 which is a 5.9% tax rate, but later you say you were charged 7.7% (or $0.77 on $9.99), which is it? Anyways, whatever the rate being charged actually is must be the rate that the state of Texas has decided is the appropriate at which music downloads should be taxed. Also, due to rounding the tax rate could be 7.75%, not 7.7%, which sounds like a more standard tax rate.
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Old Jul 14, 2004, 10:01 PM   #17
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ummm look at the first post and see who wrote it because it was not me. My first post was later on.
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Old Jul 15, 2004, 12:32 PM   #18
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Quote:
Originally Posted by Timelessblur
ummm look at the first post and see who wrote it because it was not me. My first post was later on.
Sorry, my mistake. Both of you have usernames that start with "T," and I didn't pay close enough attention to the rest of the name. Aside from that, I think it can be safe to assume that the Texas tax rate is 7.75% for music downloads (at least in your part of TX, if the law forces them to include local taxes as well as state taxes.)
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Old Jul 15, 2004, 12:45 PM   #19
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Quote:
Originally Posted by Elan0204
Sorry, my mistake. Both of you have usernames that start with "T," and I didn't pay close enough attention to the rest of the name. Aside from that, I think it can be safe to assume that the Texas tax rate is 7.75% for music downloads (at least in your part of TX, if the law forces them to include local taxes as well as state taxes.)
but that the problem the local tax is 8.25% and they are charging 7.77....%
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Old Jul 16, 2004, 06:31 AM   #20
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On May 2, 2003 I was charged tax in Illinois
On May 12, 2003 I was NOT charged tax in California.

I have not been charged tax since then


Quote:
Originally Posted by Elan0204
Good find!! I'm certain when iTMS came out that tax was charged in all states where Apple had a presence (or at the very least it was charged in IL, and you say you were not charge in CA). I suppose this means that what the original poster was told by the Apple rep they spoke to is true, that there must have been new laws passed to specifically address music download stores. I noticed that IL is NOT on the list, although when iTMS first came out I was charged sales tax. I haven't made a purchase in a long time, but I guess I shouldn't be charged tax anymore.

Timelessblur, in your original post you said you were charged $0.59 tax on $9.99 which is a 5.9% tax rate, but later you say you were charged 7.7% (or $0.77 on $9.99), which is it? Anyways, whatever the rate being charged actually is must be the rate that the state of Texas has decided is the appropriate at which music downloads should be taxed. Also, due to rounding the tax rate could be 7.75%, not 7.7%, which sounds like a more standard tax rate.
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Old Jul 16, 2004, 08:49 AM   #21
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Hmmm... Interesting

I'd never thought about it really. I live in GA, where we have a sales tax and an Apple presence. I just looked at previous credit card statements and theres no sales tax on there. I, too, am wondering what the deal is.
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Old Jul 17, 2004, 04:54 PM   #22
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I've never been charged sales tax in Missouri for iTunes but do get charged tax on hardware purchases like my imac.
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Old Jul 19, 2004, 03:07 PM   #23
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well im in TN, and I get screwed. we get a 9% tax.. thast 9 cents for every song. 1.08 for the "99cents". Oh well. Can I change my info so that It thinks im in MO, or CA or sometihng?
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Old Jul 21, 2004, 02:16 AM   #24
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You could change your info, but it would probably have to be your credit card billing address - and that would have to match your credit card. So if you know someone in a state that does not charge tax, and you can trust them to recieve your credit card bills, you can change your credit card address (to CA for example) and can just pay the credit card online (who needs all that paper mail these days anyway?).

Hey just think of all those people in Europe that pay VAT - that hovers above 17%! I am going to guess this will apply to the Europe iTMS too. Maybe that will make some of you feel better....
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Old Oct 20, 2005, 01:54 PM   #25
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Discrep at Bank

iTunes keeps sending me receipts with no tax on them but then when they hit the bank there is sometimes anywhere from a $0.03 - $.30 difference in what they say they are charging me and what the bank says they put through. So far it has added up to almost $5.00.

If you take that as an average times the number of users they have...hmmmmm. Is that a new way to post earnings growth for Apple? I have contacted iTunes but got a form response. I was hoping for at least a credit or something. Looks like I'm gonna have to go through and match invoice numbers to overages and open a can of whoop ass!. Class action suit anyone?
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