Sales Tax In iTunes Store...?

Discussion in 'Mac Apps and Mac App Store' started by Prof., Mar 7, 2009.

  1. Prof. macrumors 601


    Aug 17, 2007
    In the past when I purchased items from the iTunes store, I was never charged sales tax. Now I am. What's goin' on? Did Apple change something or is this something my State did? (Illinois) Or was it just with that specific application? (AIM).
  2. Michael CM1 macrumors 603

    Feb 4, 2008
    That's likely a state thing. I know a lot of states have talked about taxing Internet transactions, but I didn't know who (if any) did.

    As much as I like not having to pay a 6 percent tax on stuff I buy from iTunes and Amazon, I really wish this would change somehow. It's quite the unfair advantage for other stores who have storefronts and, well, it doesn't help the overall economy if there's NO tax being collected on these sales. But would I expect Congress to be forward-thinking on tech stuff? Those old coots?
  3. rdowns macrumors Penryn


    Jul 11, 2003
    Several states began collecting sales tax on digital downloads on January 1. We got hit in NY too.
  4. YoshiKing macrumors newbie

    Feb 28, 2009
    Lunenburg, Nova Scotia, Canada
    Ah, This must be just a U.S thing. I have heard about Canada wanting to join in. Not good at all. When are those big price changes going to hit in the iTunes store anyways?

  5. Prof. thread starter macrumors 601


    Aug 17, 2007
  6. Galley macrumors 65816


    Mar 24, 2008
    Yeah, I get taxed sometime, but it's only 4%, not our usual 6%. :confused:
  7. Gyrferret macrumors regular


    Jan 19, 2009
    Here in California we don't have it, at least for iTunes purchases. However, many corporations still tax you for internet transactions of physical goods, though the line gets blurred with Music and stuff....
  8. Tomorrow macrumors 604


    Mar 2, 2008
    Always a day away
    In Texas I've paid taxes on iTunes downloads since my first ones nearly five years ago.
  9. BayouBengal macrumors regular

    Oct 29, 2008
    Same here, I've lived in Texas for the past 2 years and always paid sales tax on iTunes stuff. And I recall paying sales tax in Louisiana before I moved to Texas. Though when I purchase from the Amazon MP3 Store I don't get charged sales tax.
  10. Smtevo macrumors 6502

    Jun 12, 2009
    Since when does iTunes charge tax?

    Sorry if this has been happening forever but I just notices I got charged $1.05 instead of $.99 for an app. Has this always been the case and I havent noticed or what?
  11. Gatteau macrumors 6502a

    May 23, 2009
    That doesn't happen with my purchases. I pay in Euros, I don't know if that makes any difference.
  12. Jeremy1026 macrumors 68020


    Nov 3, 2007
  13. Smtevo macrumors 6502

    Jun 12, 2009
    I live in Iowa, some purchases charge a tax and others don't.
  14. rdowns macrumors Penryn


    Jul 11, 2003

    The iTunes Store does not charge you tax. They simply collect it in places where they are required. Several states enacted taxes on digital downloads this year.
  15. TheRealDan macrumors newbie

    Dec 10, 2009
    anyone know why the tax rate is different for songs vs videos?

    I'm in Texas and itunes charges me sales tax for anything I buy, but I'm curious as to why the rates are different for music vs videos?

    I'm sure if I go into a store and buy a CD and a DVD they charge the sames
    tax rate for both, but itunes is definitely using a different rate if I buy music/albums vs a television episode.

    Why and where would one find these rates?

  16. rdowns macrumors Penryn


    Jul 11, 2003
    Probably because when you buy online, you pay the state sales tax whereas locally, the rate is the state tax plus the local tax.
  17. TheRealDan macrumors newbie

    Dec 10, 2009
    Not sure I was clear - I'm not questioning why the ONLINE tax is different than the IN-STORE tax - I'm asking why the ONLINE tax for music is different than the ONLINE tax for video?

    I'm sure the In-Store tax is the same for both music and video.

    for example, here is my receipt for a tv episode:

    Item Number Description Unit Price
    1 Mattress $2.99
    Subtotal: $2.99
    Tax: $0.25
    Order Total: $3.24

    and here is my receipt for an album:

    Item Number Description Unit Price
    4 Haydn & Hummel: Trumpet Concertos
    Write a Review Report a Problem $9.99
    Subtotal: $9.99
    Tax: $0.82
    Order Total: $10.81

    and here's for a single song:

    7 Last Christmas (Glee Cast Version)
    Write a Review Report a Problem $1.29
    Subtotal: $1.29
    Tax: $0.11
    Order Total: $1.40

    These are 3 completely different tax rates, even the album and single song are NOT the same.
    How are they figuring these?

  18. BFizzzle macrumors 68020


    May 31, 2010
    Austin TX

    Call me crazy, but those all have the same % tax. 8.25%.
  19. crashnburn macrumors 6502

    Nov 18, 2009
    Where and how can I buy from iTunes without getting hit by Sales tax?

    I travel in and out of the USA for work so have no permanent location like I used to in TX. (Thats my current billing address... which I can change to avoid tax)
  20. KirkL macrumors 6502

    Jul 27, 2010
    United States
    Amazon uses a loophole to get away with charging/paying Sales Tax.
  21. deadwulfe macrumors 6502a


    Feb 18, 2010
    Amazon doesn't have a physical store front so they don't charge sales tax. Other states like you Texas and New York people might experience differently, but that's because sales tax is a State tax and determined by each State.

    Brizzzle is right, the rates are the same. Sales tax is typically a percentage of the sale price. Around 7-8 percent is pretty typical. It also usually depends on what state, county, and town you live in. Each level of jurisdiction will charge a rate that combines for the actual sales tax rate. You can fin out the rates by looking at the tax tables for a sales tax return in your state.

    The sales tax rate is typically determined at the place the transaction occurs. Meaning some people can save a few pennies by shopping in a different county. However, when it comes to Internet transactions, sales tax is usually collected only if the seller has a physical store located in the same state as the purchaser. I may be inaccurate about this, but I believe with Internet transactions the tax rate is then determined by the purchasers location, since the transaction typically occurs in the purchaser's property or home address.

    Internet transactions are not typically exempt from sales tax, like you experience through Amazon, rather your State's tax return will often ask about significant Internet purchases in which sales tax was not collected; wanting you to pay sales tax through the income tax return.

    As someone else said, earlier, sellers aren't charging tax or deciding the rate, they're just collecting it because they're required to by the state.
  22. mgsfan18 macrumors member

    Nov 18, 2008
    I live in Ontario, Canada and just recently they started charging sales taxes on apps in the app store but music and videos in the iTunes store are still free.
  23. coochiekuta macrumors 6502

    Nov 6, 2010
    here and there
    no one charges tax, its collected. technically its your responsibility to pay the tax.

    with the amount of different tax laws and rates of each state, shops like amazon would be hassled by collecting taxes. that is why they fight it.

    states are broke tho and i see more and more will force online shops to start collecting, or at least try to enforce it.

    anyway, i too hate paying tax on imaginary goods. well, goods that arent tangible. i know its silly but these goods do not really exist and could be erased at any time and denied to me.
  24. maflynn Moderator


    Staff Member

    May 3, 2009
    I've always been charged tax. Did apple suddenly open an apple store there. Generally only when they have a presence do they start charging sales tax.
  25. Mr. Incredible macrumors 6502a

    Sep 16, 2010
    Southern California
    What states tax you 6%?!

    Here in CA its 9.875% tax. :mad:

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