05-15-2010, 02:35 PM | #1 |
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WTF, sales tax?
I ordered a new book yesterday and it was sent to the Kindle via Whispernet. As usual, they sent me an email confirming it, with the price. For the first time I've owned the K1, this never happened.
New policy? Tax on ebooks? What next? |
05-15-2010, 03:06 PM | #2 |
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It's because of the new Agency model that publishers have forced on Amazon. If a book is sold via the Agency method the seller is actually the publisher, similar to Amazon's Marketplace. So if the publisher has a physical presence in your state you are required to pay sales tax.
This will be shown on the Amazon page if it is an agency book: Print List Price: $22.99 Kindle Price: $10.99 & includes wireless delivery via Amazon Whispernet You Save: $12.00 (52%) Sold by: Hachette Book Group This price was set by the publisher |
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05-15-2010, 03:15 PM | #3 |
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I have always paid tax on my ebooks because I live in Kentucky and Amazon has a distribution center here. Any state where they have a brick and mortar business has to pay sales tax.
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05-15-2010, 06:35 PM | #4 |
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That's now another factor to take into account when deciding if we actually want to purchase a particular book. "This price was set by the publisher" = "and it's even more than you're seeing here because of tax."
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05-15-2010, 08:09 PM | #5 |
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In addition to all that's previously been stated, most states have a law that says they can collect state sales tax on an item you purchased in another state, which they may be trying to interpret across Internet sales as well. It's causing a big stink up where I live because a woman who lives in Bristol, TN had to go to Bristol, VA (same city split in half by the state lines) to buy some furniture because it was the only furniture store in town. A few months later she gets a bill for the sales tax from the State of Tennessee, who has a much higher sales tax rate (due to ZERO income tax, BTW). She didn't go to ole Virginny to save a dime, she went to the other side of the city because that's where the store was.
Here's the kicker: the end of her front yard is in Tennessee, but the fence of her back yard is along the Virginia border. If her house were 30 feet the other way this wouldn't have happened. Long story short: I expect us all to have to pay local taxes on Internet purchases by the end of the year, including e-books. |
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05-15-2010, 10:47 PM | #6 |
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It is highly debatable to say the very least. I think that most states will target vices first...alcohol and tobacco.
In terms of reporting it to a home state although that's technically the law in my state it is nearly impossible to enforce it |
05-16-2010, 02:51 AM | #7 |
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Most states actually expect you to report out of state purchases that you haven't paid sales tax on (though obviously no one does). In the current economic climate, it doesn't surprise me in the least that the states are looking to hit up Internet purchases for their sales and use tax revenues. Businesses have been subject to out of state sales tax audits for a long time.
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05-16-2010, 08:31 AM | #8 |
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I've been taxed from day one. I live in Washington State. and then I come to find out that the 6 months I lived in California, my ebook purchases shouldn't have been taxed. but the mailing address for my card was WA state so they were, and ironically enough, even though I was still a legal resident of Wa state, I still owe CA state taxes. 450 big dollars.
sucks |
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