iTunes Gift Cards: Double Taxing?!?

Discussion in 'Community' started by jared_kipe, Jan 8, 2005.

  1. jared_kipe macrumors 68030

    jared_kipe

    Joined:
    Dec 8, 2003
    Location:
    Seattle
    #1
    Ok so for those of you who bought or got a Target (or elsewhere?) gift card for iTunes, I think I may have found a problem. When you buy it from Target you get taxed, normal sales tax for your state. However, when the receiver puts it into iTunes it gives him a $15 credit. When you buy a single song it goes down to $13.93, a 7¢ tax for that single song.

    Ok still with me? That means uncle sam taxed you twice for that same dollar. Shouldn't prepaid cards either be tax exempt at the checkout line, like a normal Target gift card, or it should be tax exempt inside the iTMS. Maybe they could just give you a 15 song credit, though that would mess with the people who would buy an album. But it is better than getting a 14 and some odd song count gift card.
     
  2. Macophile macrumors member

    Joined:
    Jul 17, 2002
    Location:
    Southern California
    #2
    Are you sure that they charge sales tax on the card when it's purchased? I've never bought one, so I never really thought about it. It seems like a gift card is a gift card is a gift card, or should be. I'd worry less about the state double-taxing than Target not ringing up the sale correctly. (And it is the state, since there isn't a federal sales tax for "Uncle Sam" to collect on.)
     
  3. snkTab macrumors 6502a

    snkTab

    Joined:
    Nov 13, 2004
    Location:
    Cincinnati, OH
    #3
    when you buy a $10 giftcard anywhere it should be $10. in fact when a store sells you a giftcard, they aren't really selling it to you. they are merely exchanging $10 for $10. that said, you shouldnt be charged the tax on the initial purchase.

    i checked apple.com and went through to the last checkout and it gave me a estimated tax value. i went through amazon.com and it would have given me the giftcard tax-free
     
  4. jared_kipe thread starter macrumors 68030

    jared_kipe

    Joined:
    Dec 8, 2003
    Location:
    Seattle
    #4
    I am rather certain I paid tax for the iTMS gift card I bought. It was the only thing I bought in that store (because I forgot to get it while I was at the apple store earlier) I would remember if I gave them even change.
     
  5. snkTab macrumors 6502a

    snkTab

    Joined:
    Nov 13, 2004
    Location:
    Cincinnati, OH
  6. GeeYouEye macrumors 68000

    GeeYouEye

    Joined:
    Dec 9, 2001
    Location:
    State of Denial
    #6
    I don't pay sales tax on iTMS purchases, and I'm 40 miles from Cupertino (or my billing address is, anyway). NOT THAT I'M COMPLAINING IN ANY WAY, let me make that clear!!
     
  7. snkTab macrumors 6502a

    snkTab

    Joined:
    Nov 13, 2004
    Location:
    Cincinnati, OH
    #7
    all i know is that i wasn't charged tax when i used pepsi bottle caps
     
  8. Chip NoVaMac macrumors G3

    Chip NoVaMac

    Joined:
    Dec 25, 2003
    Location:
    Northern Virginia
    #8
    I have never been charged sales tax on Gift Cards or Gift Certificates. If you have, then contact your state board of taxation for clarification.
     
  9. crazzyeddie macrumors 68030

    crazzyeddie

    Joined:
    Dec 7, 2002
    Location:
    Florida, USA
    #9
    You also shouldn't be charged tax on the iTMS...
     
  10. Ugg macrumors 68000

    Ugg

    Joined:
    Apr 7, 2003
    Location:
    Penryn
    #10
    I live in California and have bought directly via CC and purchased Gift Cards. I've never been charged tax on anything, nada, zilch, nichts, etc... Check your receipt.
     

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