WTF, sales tax?

KlondikeGeoff · 05-15-2010, 02:35 PM

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?

Ajax · 05-15-2010, 03:06 PM

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

PG4003 · 05-15-2010, 03:15 PM

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.

Snorkledorf · 05-15-2010, 06:35 PM

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."

HaggisMacJedi · 05-15-2010, 08:09 PM

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.

mdovell · 05-15-2010, 10:47 PM

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

bevdeforges · 05-16-2010, 02:51 AM

Quote:

Originally Posted by HaggisMacJedi

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.

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.

kindlekitten · 05-16-2010, 08:31 AM

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

05-15-2010, 02:35 PM	#1
KlondikeGeoff Wombat Aficionado Posts: 481 Karma: 733 Join Date: Nov 2006 Location: Arizona Device: Fire, Kindle1, Sony PRS-500 Reader, Rocket 1100 eBook	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?

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05-15-2010, 03:06 PM	#2
Ajax Addict Posts: 386 Karma: 17083352 Join Date: Feb 2009 Location: Texas Device: K4 Touch, Kindle Fire, HP Touchpad	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

05-15-2010, 03:15 PM	#3
PG4003 Addict Posts: 381 Karma: 987250 Join Date: Mar 2010 Location: Kentucky Device: Kindle PW I & II, Kindle Voyage, Fire HD 7", Fire HD 8.9"	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.

05-15-2010, 06:35 PM	#4
Snorkledorf Blue. Not sad...just blue Posts: 218 Karma: 1267018 Join Date: Oct 2009 Location: Japan Device: Ridibooks Paper Pro	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."

05-15-2010, 08:09 PM	#5
HaggisMacJedi Zealot Posts: 130 Karma: 1145527 Join Date: Jun 2008 Device: Kindle Fire HD, Kindle 4, iPhone 4	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.

05-15-2010, 10:47 PM	#6
mdovell Zealot Posts: 144 Karma: 3168 Join Date: Feb 2010 Device: Kindle DX	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, 08:31 AM	#8
kindlekitten Professional Adventuress Posts: 13,368 Karma: 50260224 Join Date: Sep 2009 Location: The Olympic Peninsula on the OTHER Washington! (the big green clean one on the west coast!) Device: Kindle, the original! Times Two! and gifting an International Kindle	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