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Taxing apps I download.

ROADDOG01

ROADDOG01

macrumors regular
Original poster
Sep 26, 2007
102
0
I just watched my local news. I live in RI. They are taxing a few things starting in October Including phone apps. How can they do this how do they even know I live in RI to tax what apps I download. Is it my cell number or address? Crazy I guess it is time to jailbreak.

John
 
I live in Texas and I pay sales tax on iPhone apps, just gets added in. They have to charge sales tax in Texas because they have physical apple store locations here.
 
They know you live in RI, because you told them when you gave them your credit card info to pay for apps and music.
 
I've always been paying tax on apps in Florida ever since the App Store's inception.
 
TraceyS/FL said:
I don't! LOL!

I wonder why? But I don't pay tax on apps or music and my iTunes account has always had a FL address.
Click to expand...

LOL
I just realized that my billing information links to New Jersey. :eek:

So there's no sales tax on apps in Florida? Interesting.
 
In most states you are supposed to pay taxes on ALL online purchases. The reason why some stores add it in and some don't is because the stores that do, like Apple or best buy, have a presence in your state and thus the state can enforce it. For a site like Newegg, they only have locations in new jersey and california (to my knowledge) and thus only charge sales tax to those customers because other states cannot collect from them. The catch is, you typically are required to pay that sales tax to your state when you file your taxes, except most people do not report it.
 
I also just saw the part about jailbreaking. Jailbreaking won't affect paying taxes for purchasing apps through apple. Apple only does it because they are compelled to do so by the state they are licensed to do business in. Jailbreaking would allow you to purchase apps through Cydia, but then if Cydia was licensed in Rhode Island, they too would charge tax if they wanted to continue operating. Since they are a virtual store, it is likely they are only licensed in one state where they are based, and only purchases made in that state would be taxed.
 
wordoflife said:
lol, is that the form you are suppose to fill out when you purchase stuff on Amazon since they don't charge tax?
Click to expand...

I didn't read it, but most likely. The biggest absurdity about internet purchase taxes is the idea that people are supposed to keep track of it all. I figure if the state wants the money, they should figure out how to keep track of it.
 
wvphysics said:
I didn't read it, but most likely. The biggest absurdity about internet purchase taxes is the idea that people are supposed to keep track of it all. I figure if the state wants the money, they should figure out how to keep track of it.
Click to expand...

I agree. I'm not even sure if most people even fill that form out when buying stuff online
 
wvphysics said:
I didn't read it, but most likely. The biggest absurdity about internet purchase taxes is the idea that people are supposed to keep track of it all. I figure if the state wants the money, they should figure out how to keep track of it.
Click to expand...

My families biz was "lucky" enough to get picked for an IRS audit AND a state of CA sales tax audit one year.... The IRS guy was welcome anytime after that. Ye gads was that lady into everything. We actually quit using some vendors for stuff because it ws easier to buy from people in CA and avoid tracking the taxes.

The problem is this is federal law, then the states have to figure out how to collect it. Amazon just shut down their affiliates in CA last night because of sales tax.

Not sure why FL doesn't collect it since we have apple stores..... Gotta be a tax loophole.
 
TraceyS/FL said:
My families biz was "lucky" enough to get picked for an IRS audit AND a state of CA sales tax audit one year.... The IRS guy was welcome anytime after that. Ye gads was that lady into everything. We actually quit using some vendors for stuff because it ws easier to buy from people in CA and avoid tracking the taxes.

The problem is this is federal law, then the states have to figure out how to collect it. Amazon just shut down their affiliates in CA last night because of sales tax.

Not sure why FL doesn't collect it since we have apple stores..... Gotta be a tax loophole.
Click to expand...

It's weird because it clearly says that each sale, admission charge, storage, or rental is taxable. I figured iTunes media would fit in that description.

http://dor.myflorida.com/dor/taxes/sales_tax.html
 
wordoflife said:
It's weird because it clearly says that each sale, admission charge, storage, or rental is taxable. I figured iTunes media would fit in that description.

http://dor.myflorida.com/dor/taxes/sales_tax.html
Click to expand...

I just went thru my receipts and they aren't charging tax on ebooks either. I swear I did get charged once a few years ago. I don't have any for movies/tv shows though, so I can't check them. Well I might, but they'd be old.

The law (which i haven't read/clicked on yet) could be written to not include electronically downloaded material. I would imagine that whatever the reason is it isn't done, it won't be "too long" before it happens. Which is going to muck up using iTunes cards... Because then you have to think about tax and mention that the kids!

Eta:
Your total price will include the price of the product plus any applicable sales tax; such sales tax is based on the bill-to address and the sales tax rate in effect at the time you download the product. We will charge tax only in states where digital goods are taxable.
Click to expand...
that is from the iTunes store terms and conditions.... So obviously FL hasn't done this. Yet.

http://www.apple.com/legal/itunes/us/terms.html#GIFTS
 
Last edited:
ROADDOG01 said:
I just watched my local news. I live in RI. They are taxing a few things starting in October Including phone apps. How can they do this how do they even know I live in RI to tax what apps I download. Is it my cell number or address? Crazy I guess it is time to jailbreak.

John
Click to expand...

What are you hoping jailbreaking to provide you? Tax evasion? Piracy?
 
TraceyS/FL said:
I just went thru my receipts and they aren't charging tax on ebooks either. I swear I did get charged once a few years ago. I don't have any for movies/tv shows though, so I can't check them. Well I might, but they'd be old.

The law (which i haven't read/clicked on yet) could be written to not include electronically downloaded material. I would imagine that whatever the reason is it isn't done, it won't be "too long" before it happens. Which is going to muck up using iTunes cards... Because then you have to think about tax and mention that the kids!

Eta:

that is from the iTunes store terms and conditions.... So obviously FL hasn't done this. Yet.

http://www.apple.com/legal/itunes/us/terms.html#GIFTS
Click to expand...

Thanks for the info, good stuff! :)
 
wvphysics said:
In most states you are supposed to pay taxes on ALL online purchases. The reason why some stores add it in and some don't is because the stores that do, like Apple or best buy, have a presence in your state and thus the state can enforce it. For a site like Newegg, they only have locations in new jersey and california (to my knowledge) and thus only charge sales tax to those customers because other states cannot collect from them. The catch is, you typically are required to pay that sales tax to your state when you file your taxes, except most people do not report it.
Click to expand...


Thanks for the info makes sense there is one in RI
 
outphase said:
What are you hoping jailbreaking to provide you? Tax evasion? Piracy?
Click to expand...

No not at all just don't feel like I should be taxed on a app that I download it is crazy just my opinion Plus I would not jailbreak my phone I have my Ipod touch jail broken don't want to to it to my iphone
 
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