Taxing apps I download.

Discussion in 'iPhone' started by ROADDOG01, Jun 30, 2011.

  1. ROADDOG01 macrumors regular

    ROADDOG01

    Joined:
    Sep 26, 2007
    #1
    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
     
  2. Votekinky06 macrumors 6502

    Joined:
    Jun 10, 2011
    #2
    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.
     
  3. dickdaney macrumors regular

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    Dec 10, 2009
    #3
    They know you live in RI, because you told them when you gave them your credit card info to pay for apps and music.
     
  4. wordoflife macrumors 604

    wordoflife

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    Jul 6, 2009
    #4
    I've always been paying tax on apps in Florida ever since the App Store's inception.
     
  5. TraceyS/FL macrumors 68040

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    Jan 11, 2007
    Location:
    North Central Florida
    #5
    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.
     
  6. wordoflife macrumors 604

    wordoflife

    Joined:
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    #6
    LOL
    I just realized that my billing information links to New Jersey. :eek:

    So there's no sales tax on apps in Florida? Interesting.
     
  7. Applejuiced macrumors Westmere

    Applejuiced

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    #7
    That sucks.
    What more are they gonna tax next?
     
  8. TraceyS/FL macrumors 68040

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    North Central Florida
    #8
    Nope, but I'm sure it is coming....

    Meanwhile, maybe you should "move" to FL!! :D
     
  9. wordoflife macrumors 604

    wordoflife

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    #9
    lol, I "am" in Florida. But perhaps I should move my billing information to avoid unnecessary tax.
     
  10. wvphysics macrumors regular

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    Jul 7, 2010
    #10
    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.
     
  11. codymac macrumors 6502

    Joined:
    Jun 12, 2009
    #11
    As wvphysics pointed out, you'd have tax due even if they didn't.
    :(

    Here's a link to the Texas Occasional Use Tax form:

    http://www.window.state.tx.us/taxinfo/taxforms/01-156.pdf
     
  12. wvphysics macrumors regular

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    Jul 7, 2010
    #12
    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.
     
  13. wordoflife macrumors 604

    wordoflife

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    #13
    lol, is that the form you are suppose to fill out when you purchase stuff on Amazon since they don't charge tax?
     
  14. wvphysics macrumors regular

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    Jul 7, 2010
    #14
    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.
     
  15. wordoflife macrumors 604

    wordoflife

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    #15
    I agree. I'm not even sure if most people even fill that form out when buying stuff online
     
  16. TraceyS/FL macrumors 68040

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    Location:
    North Central Florida
    #16
    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.
     
  17. wordoflife macrumors 604

    wordoflife

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    #17
    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
     
  18. TraceyS/FL, Jul 1, 2011
    Last edited: Jul 1, 2011

    TraceyS/FL macrumors 68040

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    #18
    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
     
  19. Cosmo Kramer macrumors member

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  20. outphase macrumors 65816

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    #20
    What are you hoping jailbreaking to provide you? Tax evasion? Piracy?
     
  21. PNutts macrumors 601

    PNutts

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    Jul 24, 2008
    Location:
    Pacific Northwest, US
    #21
    IANAL but I don't think it is a federal law. They are enacted on a state-by-state basis.

    http://en.wikipedia.org/wiki/Sales_tax
     
  22. wordoflife macrumors 604

    wordoflife

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    Jul 6, 2009
    #22
    Thanks for the info, good stuff! :)
     
  23. ROADDOG01 thread starter macrumors regular

    ROADDOG01

    Joined:
    Sep 26, 2007
    #23

    Thanks for the info makes sense there is one in RI
     
  24. ROADDOG01 thread starter macrumors regular

    ROADDOG01

    Joined:
    Sep 26, 2007
    #24
    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
     
  25. TraceyS/FL macrumors 68040

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    Location:
    North Central Florida
    #25
    Federal law does the brick and mortar aspect, in order for states to change that it has to happen at the federal level. The states would LOVE to just tax all online purchases, but can't. You have to get creative like CA apparently did.
     

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