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iTunes now charges Taxes???

MattyMac

MattyMac

macrumors 68000
Original poster
Oct 6, 2005
1,692
17
NJ/NYC
I may be delayed in this discussion, but I havent downloaded a song from iTunes in a while and yesterday I bought two from a gift card. I noticed that they no longer charge me .99 cents, but they charge $1.06 :eek: They are charging the 7% sales tax that takes place in NJ.

This stinks! It's only .07 cents, but it adds up.
 
MattyMac said:
I may be delayed in this discussion, but I havent downloaded a song from iTunes in a while and yesterday I bought two from a gift card. I noticed that they no longer charge me .99 cents, but they charge $1.06 :eek: They are charging the 7% sales tax that takes place in NJ.

This stinks! It's only .07 cents, but it adds up.
Click to expand...

I remember something about this. I think it is only NJ thats affected. However I may be wrong.
 
MattyMac said:
I may be delayed in this discussion, but I havent downloaded a song from iTunes in a while and yesterday I bought two from a gift card. I noticed that they no longer charge me .99 cents, but they charge $1.06 :eek: They are charging the 7% sales tax that takes place in NJ.

This stinks! It's only .07 cents, but it adds up.
Click to expand...

That's not the only funky thing...on occasion, I'll get charged $1.01 if I buy one iTunes song, on occasion $1.00. On the other hand, it's a debit card (check card) so...
 
This isn't new.

It depends on the state.

Chances are, if you have an Apple Store, or Apple corporate office located in your state, you will also have to pay sales tax on online purchases (however this isn't the case for some states).
 
840quadra said:
This isn't new.

It depends on the state.

Chances are, if you have an Apple Store, or Apple corporate office located in your state, you will also have to pay sales tax on online purchases (however this isn't the case for some states).
Click to expand...

indeed. i've never been charged tax on the iTunes Store and i live in IL.

*crosses fingers and hopes it never changes*
 
it's all state based, like going into nyc and buying a certain brand will result in no sales tax if shipped to my city of philadelphia if we do not have the brand. anyway, the point is, sales tax is determined at the state level.
 
Yeah it does depend on the state when you purchase items online. If a certain company has a warehouse or store within that state, you will be charged sales tax...if not, then no tax.

However, this sales tax is new here in NJ with iTunes purchases. Kind of a bummer too...with a 15$ gift card, I can now only get 14 songs:(
 
MattyMac said:
Yeah it does depend on the state when you purchase items online. If a certain company has a warehouse or store within that state, you will be charged sales tax...if not, then no tax.

However, this sales tax is new here in NJ with iTunes purchases. Kind of a bummer too...with a 15$ gift card, I can now only get 14 songs:(
Click to expand...

i believe it was a new law that when into effect for the new year, but i could be wrong on the details. i thought i saw someone else mention it a few months back...
 
PlaceofDis said:
i believe it was a new law that when into effect for the new year, but i could be wrong on the details. i thought i saw someone else mention it a few months back...
Click to expand...

I know our taxes jumped from 6.0% to 7.0% this past summer, maybe it has something to do with that change in law.
 
I do know that the few times I bought something from the iTunes store that the price was originally including tax on my statement online, but when I would check it a few days later, it would be the regular .99 cents. And this is in Cook County, IL.
 
Warbrain said:
I do know that the few times I bought something from the iTunes store that the price was originally including tax on my statement online, but when I would check it a few days later, it would be the regular .99 cents. And this is in Cook County, IL.
Click to expand...


Illinois seems like the place to be to avoid taxes:)
 
MattyMac said:
Illinois seems like the place to be to avoid taxes:)
Click to expand...

Only if you don't smoke cigarettes in the Cook County area or Chicago. It's at least a 100% tax if I remember right.

Well, the city of Chicago in general is just bad if you don't want to pay high taxes...
 
Warbrain said:
Only if you don't smoke cigarettes in the Cook County area or Chicago. It's at least a 100% tax if I remember right.

Well, the city of Chicago in general is just bad if you don't want to pay high taxes...
Click to expand...

indeed. 9% tax on all purchases. :eek:
most of the suburbs are 7.5-8% on all purchases depending i believe.

this is one of the reasons i buy products from amazon and music from iTunes. its cheaper. Amazon doesn't charge me tax and neither does iTunes. 9.99 for an album is much better than 9.99+9% tax. :eek:

Cigs are very very heavily taxed. My mother smokes and she gets her cigs far away from the city to avoid the high taxes.
 
PlaceofDis said:
indeed. 9% tax on all purchases. :eek:
most of the suburbs are 7.5-8% on all purchases depending i believe.

this is one of the reasons i buy products from amazon and music from iTunes. its cheaper. Amazon doesn't charge me tax and neither does iTunes. 9.99 for an album is much better than 9.99+9% tax. :eek:

Cigs are very very heavily taxed. My mother smokes and she gets her cigs far away from the city to avoid the high taxes.
Click to expand...

Yep, you go out just into DuPage County and the price of cigarettes drops in half. Same goes for fuel. And the sales tax is usually 6 percent out there...
 
The NJ iTunes tax went into effect on October 1st, along with the rate increase.

Linky

MattyMac said:
This stinks! It's only .07 cents, but it adds up.
Click to expand...

And this immediately made me think of the Verizon customer service incident...it's 7 cents, not .07 cents. ;) :D :cool:
 
I was also surprised to see that I was charged taxes when I made a purchase yesterday and I live in Illinois. I think it was because I bought two iPod games which are labeled as software and not music. It was 62 cents so it comes out to about a 6.2% tax if taking only the games into account, if taking the songs I bought into account, it would be 3.12% tax which makes no sense. So I'm thinking it's only for games, at least in Illinois.
 
WildCowboy said:
The NJ iTunes tax went into effect on October 1st, along with the rate increase.

Linky



And this immediately made me think of the Verizon customer service incident...it's 7 cents, not .07 cents. ;) :D :cool:
Click to expand...

Wow...thanks for doing the research...I knew it was originally tax free and wondered why it changed. You answered my question.
 
I live in Rhode Island, and I have never paid tax on iTunes songs. I don't know if this is weird, but I have never paid tax on iTunes cards either.
 
840quadra said:
This isn't new.

It depends on the state.

Chances are, if you have an Apple Store, or Apple corporate office located in your state, you will also have to pay sales tax on online purchases (however this isn't the case for some states).
Click to expand...



Louisiana is one of those that has to pay taxes (8.75%) on anything we buy directly from Apple even though we have nothing Apple in the state.
 
840quadra said:
Chances are, if you have an Apple Store, or Apple corporate office located in your state, you will also have to pay sales tax on online purchases (however this isn't the case for some states).
Click to expand...
Ya, this isn't true for California. Despite the fact that we have Apple's headquarters located in CA, we only pay $.99.
 
MattyMac said:
I may be delayed in this discussion, but I havent downloaded a song from iTunes in a while and yesterday I bought two from a gift card. I noticed that they no longer charge me .99 cents, but they charge $1.06 :eek: They are charging the 7% sales tax that takes place in NJ.

This stinks! It's only .07 cents, but it adds up.
Click to expand...

Ya, its a pain because my 25 dollar gift card doesn't get me 25 songs.
 
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