Why do they charge tax on apps?

Discussion in 'iPad' started by Virgo, Jul 1, 2011.

  1. Virgo, Jul 1, 2011
    Last edited: Jul 2, 2011

    Virgo macrumors 6502

    Virgo

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    Jun 7, 2011
    Location:
    Los Angeles, CA
    #1
    A 99 cent app charged me $1.07. A 99 cent song on iTunes charged me 99 cents. I know it's 8 cents, big deal, but it's still annoying. Do they base it on your billing address location, or what?
     
  2. tnisatard macrumors 6502

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  3. Aspasia macrumors 65816

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    Jun 9, 2011
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    Halfway between the Equator and North Pole
    #3
    My 99 cent purchase was charged sales tax of six cents. :( Apple apparently collects sales tax based on your state's tax rate.

    Very odd about California tax not being collected given the recent news about CA going after Amazon for tax bucks.
     
  4. RWinOR macrumors 6502

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    #4
    Its based on where you live. Here in beautiful Oregon, I pay ZERO Sales tax on all purchases. Sweet!
     
  5. pmz macrumors 68000

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    NJ
    #5
    Sales tax is a good thing a great source of revenue. Income tax on the other hand....if you want to complain, that's your target.
     
  6. RWinOR macrumors 6502

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    #6
    You could live in Washington State, they pay ZERO income tax.

    Best of both worlds, live/work in Washington St. on the Oregon border, then shop in Oregon.

    Almost tax free, except for delivery items or automobiles. But anything you can pick up and carry yourself is tax free. :D
     
  7. MisterMe macrumors G4

    MisterMe

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    USA
    #7
    I don't like political discussions, however .... I live in a state that relies heavily on the sales tax. Sales taxes are regressive. Sales taxes place a levy on purchases. A substantial fraction of our citizens live hand-to-mouth. Every penny earned is spent on the necessities of life--food, clothing, shelter, transportation, etc. Therefore, essentially every penny earned is taxed. The rich, however, have a lot of money left over after they take care of their necessities of life. Therefore, the sales tax does not touch the vast majority of their resources. OTOH, the income tax is progressive. Although, there is pressure to levy the income tax only on middle-class wage earners. This is because the income tax is levied only on incomes above a certain threshold. Champions of the rich and powerful want to exempt investment income from the income tax. For those citizens whose incomes are generated primarily by investments, the primary source of income would also be exempt.
     
  8. Virgo thread starter macrumors 6502

    Virgo

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    Jun 7, 2011
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    Los Angeles, CA
    #8
    Argh, then I'm changing my address from my school in expensive-ass New York to my parents place here in VA where sales tax is only 5% :). I was happy about that when buying my iPad here.

    But why do they charge tax on apps but not music?
     
  9. MisterMe macrumors G4

    MisterMe

    Joined:
    Jul 17, 2002
    Location:
    USA
    #9
    Depending on the jurisdiction, some items are exempt from sales tax. Also, the items in a particular jurisdiction that are subjected to sales tax changes from time to time.
     
  10. b0blndsy macrumors 6502

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    Illinois
    #10
    It all depends upon start tax laws etc and its not a bad thing at all.
     
  11. wordoflife macrumors 604

    wordoflife

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    Jul 6, 2009
    #11
    I get charged tax on apps. my billing info is NJ
     
  12. pmz macrumors 68000

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    Nov 18, 2009
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    NJ
    #12
    Sorry but repeating the broken, misleading, wrong idea you heard on tv does not count as a political opinion. Another doof that thinks taxing the "rich" is the answer to poor middle class' prayers. You don't even know what you're talking about within the same paragraph. You say essentially every penny earned is taxed, yet go on to say income tax is a good idea. WTF?

    Yea, those struggling financially are doing much better every week when the government has taken 30% of their paycheck. The "rich" are not even who you think they are. You think rich is someone making 250,000 dollars a year. What you don't understand is that person is just as broke as you are, because the US dollar isn't worth anything anymore. There's the broke, and there's the disgustingly wealthy that are so far separated from us, no tax or law of any kind can/will touch them.
     
  13. DiamondMac macrumors 68040

    DiamondMac

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    Washington, D.C.
    #13
    If someone is making $250k and they are anywhere near "broke", they are morons with their money....period. My wife makes not even 1/3rd that TODAY and she alone could live a normal, balanced life with the usual car/house payments.

    The line about "the dollar is broke" is a bit laughable in this context. Is the dollar broken? Of course compared to past years. But to try and actually argue that someone making $250k is as broke as that poster (who I assume we took to mean he made substantially less than $250k)....is hilarious.

    You claimed the other poster took a same-tired line about his tax views yet you did the exact same thing about your anti-tax views. Nothing substantial and a good amount of over-exaggerations
     
  14. reckless2k2 macrumors 6502a

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    Jul 10, 2008
    #14
    Hey Virgo,
    I'm a sales tax manager chomping at the bit to get a job at Apple. Hahaha. Seriously though, your State has regulations about the digital delivery of goods that would cover audio and visual works as well as software which would cover the apps. Some States have enumerated each, generally spoken terms, or only specified certain items.

    Without knowing your State, I couldn't tell you the regulations or statutes to confirm. The best answer to avoid tax would be to live in a sales tax free State.

    NOMAD
    • New Hampshire
    • Oregon
    • Montana
    • Alaska
    • Delaware

    Other than that, you'd have to know how they handle each item you're purchasing. Downloaded music and video are typically noted separately from software (apps). Digital delivery of software has been common for quite sometime where music and video are relatively new.
     
  15. reckless2k2 macrumors 6502a

    Joined:
    Jul 10, 2008
    #15
    This is an unfair statement. The more you make, the more you tend to spend. It's not fair to say they are making enough based on your standards of living. And to be clear, your standard of living would change depending on your income made.

    Example:
    They would necessarily have a bigger house, better or more cars, and possibly more children that would yield larger consumption of any good or service not to mention schools.

    Equate it to your life. If I made more money, my children would be in private school as opposed to public. I would drive a 2011 BMW instead of a 2000 Chevy Malibu with rolling up windows and a broken cassette radio. I would live in a bigger house so that my wife and I could have more children naturally or through adoption.

    It's wrong to say what's too much because I guarantee if you made more you'd spend more. It's a fact of life. And consumption is not bad either and our economy depends on it. The more someone like that spends the more people have goods or services to provide to keep everything going.
     
  16. taipan61 macrumors 6502

    Joined:
    May 18, 2011
    Location:
    corner starbucks
    #16
    ok i'm all for chopping off the nasty head of "income" tax and going totally for a "consumption" tax where everyone pays to buy or consume products
    and i know that all of my tax shelters are dwindling due to our massive governments move to redistribute everyone's wealth but their own (actually the only difference between myself and the uber-rich is that they can afford to hire people to hide it better...eek:)
    now how does everyone feel about inheritance taxes?:D
     
  17. kuebby macrumors 68000

    kuebby

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    Location:
    SFV
    #17
    All of those things you mentioned though, are, in my option, pretty moronic things to spend money on. It's well known in economics that people try to live slightly above their means, and this becomes more pronounced, and more of a problem when one is upper-middle class (ie, the kind of people that live in McMansions and drive new BMWs).

    Your point about children is also incorrect. People who make more money are statistically better at family planning and either have less children or are more prepared for the children they do have (ie, have them later in life when their careers/lives are more stable).

    And to keep my post on topic: I live in Maryland and I've never noticed sales tax being added to my app purchases (which would be 6% here).
     
  18. Sdevante macrumors 6502

    Joined:
    Dec 12, 2008
    #18
    I would also like to throw out there that income is not everything, and your standard of living is not everything. Thankfully, I have finished school and my household is bringing in an amount I used to only dream about.

    Unfortunately, the amount of student debt I incurred to make that income is such that, if it wasn't for income based repayment, I would be beyond destitute.

    My point being, it is all relative. Even excluding the people who think they are poor because they can't afford a second yacht, it is still relative.
     
  19. Blakjack macrumors 68000

    Blakjack

    Joined:
    Jun 23, 2009
    #19
    I've been in Florida and Georgia and have never been charged tax
     
  20. Consultant macrumors G5

    Consultant

    Joined:
    Jun 27, 2007
    #20
    VA has no tax right now.
     
  21. Xeperu macrumors 6502

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    May 3, 2010
    #21
    21% tax here. But it's included in the price. Then again I already paid 52% tax on my income, so I guess I'm double screwed.
     
  22. ActionableMango macrumors 604

    ActionableMango

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    Sep 21, 2010
    #22
    Apple does not charge tax. Apple is collecting tax that your state charges, according to the laws of the state.
     
  23. whatdoiknw macrumors member

    Joined:
    Apr 21, 2011
    #23
    Even though I live in a "taxed" state, I just go buy iTunes gift cards (no tax charged) so I don't have a credit card on file for iTunes.

    Then I just change my zip and state to Oregon since the have no sales tax. iTunes doesnt collect sales tax for me anymore :D
     
  24. DiamondMac macrumors 68040

    DiamondMac

    Joined:
    Aug 11, 2006
    Location:
    Washington, D.C.
    #24
    Generally speaking, you are right. That does seem to be how the public seems to act.

    But I still would ask, whose fault is that?

    I get that those with more money would probably buy better cars (ie more money), buy better houses (more money, etc....I do understand that.

    With all that said, even with those price increases, $250k is a VERY sizeable amount that through even decent spending-restraints, can overcome those issues AND live a life where food is on the table every night and all payments are done. (Note that I dont mean $250k can pay directly for them in full but through payments of them, ie mortgage payments)

    I do know plenty of people making $250k combined with their wives and I don't know any of them who are even remotely struggling financially. They don't seem to spend MAJORLY on any non-mandatory issues
     
  25. Agent-P macrumors 68030

    Agent-P

    Joined:
    Dec 5, 2009
    Location:
    The Tri-State Area
    #25
    I think I know where I'm moving next :D

    I use only gift cards too, but I never thought of this. Thanks for the suggestion.
     

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