Quote:
Originally Posted by Kumabjorn
So if I understand this correctly, in most states goods are charged a sales tax (provided the state has a tax) and now they want to charge that on online shopping, including eBooks and music files. However, other legislation (mainly federal, perhaps?) treats eBooks and Mp3s as a service or rental, since it is a licens for usage?
In my mind this doesn't add up. Either it is a goods, and has to be treated like one, including the ability to re-sell it and loan it to someone, and in return the consumer has to accept getting to pay sales tax on it, or it is treated as a service, you can't resell it or loan it to someone, on the other hand you don't have to pay sales tax on it. I suppose my confusion is the basis for the pervalent litigation in the US.
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Now you know how merchants feel. And, in some states, the government employees who collect the tax. It gets very, very complicated, especially for food. In some cases, the exact same food it taxable if you buy one package at a convenience store, but not if you buy a case from a grocery store. At one point, in California, the Board of Equalization (who collect sales tax) put out a press release saying "We don't know what's taxable any more either."