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Music Downloads Taxable in 15 States...

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Originally posted by: Zim Hosein
Originally posted by: YoshiSato
Originally posted by: Lonyo
Simple answer is a flat rate tax applied to all products and services before you buy, with the rate standardised across the whole of the USA. Including both online and B&M services and products.
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That is not the simple answer. While I do support the national sales tax to replace FICA and personal income it will not solve this "problem" of states not getting their tax cut.

Sure when I buy from new egg they charge me 23% fed tax on my $100 hard drive, but Virginia will never see their 5%, unless I file a use tax at the end of the year. Which will cost me and the state more than 5 dollars to process.
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Is that a typo YoshiSato? 😕
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Nope, that is the proposed federal sales tax.(rates vary from 17.5% to 25% depending on who is doing the number crunching)

While you think that might be a lot of tax it's really not.

Remember you have NOTHING removed from you pay check, no income tax, no Social security, no medicare. Still may have state income removed but that's upto your state.

Even at the lowest tax bracket that's a tax rate of about 17.5%. Also the fed tax only applies to "luxury" items. Foods, clothing and medication are not taxed.(And in my opinion if you're a bottom dollar earner ,you should not be buying a lot of luxury items)

I've done the math. I'd have about $200 more spending money per moth, after takeing into account the taxes on my normal monthly expenses.

 
Originally posted by: prontospyder
iTunes charged me $1.69 in taxes when I bought 20 songs recently. Is the 'use tax' different from the tax I already paid?
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What state are you in?(very important for sales tax), if Itunes has a office in your state they need to charge you tax(I bet you in CA)


Use tax applies to goods puchased out side of the state but consumed in your resident state. This usually only applies if you did not already pay taxes on said item.

Meaning if you went to deleware which has no sales tax buy a case of beer, take it to VA and drink it in VA you need to pay a VA use tax. If you go to NC buy some beer and pay NC sales tax but drink the beer in VA, the beer is not subject to use tax.
 
Originally posted by: GTaudiophile
Originally posted by: CrackRabbit
So when do we reach the point when we have another Boston Tea Party?
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Sign me up! Someone needs to torch the US Treasury!
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That type of ignorance scares me.

The Boston Tea party was completely different.
The Use tax is nothing new and was put in place by your state government state government which was elected by state resedients to represent the people of the state
 
It's not even that they want a couple bucks that irritates me (well, yeah, it does), but the idea of staying out of the eye of big brother. Do I say that I didn't buy anything online, because that's what everyone else will do, and I will fit in with the crowd, or do I make up a reasonable low number, or do I actually waste my damn time going through a years worth of statements and receipts so that I can give my state less money than they would have to pay me to hire me for that length of time?

Well, I went through my statements, and put in an accurate number, and you just watch - they'll audit me, the ******.
 
Originally posted by: myusername
It's not even that they want a couple bucks that irritates me (well, yeah, it does), but the idea of staying out of the eye of big brother. Do I say that I didn't buy anything online, because that's what everyone else will do, and I will fit in with the crowd, or do I make up a reasonable low number, or do I actually waste my damn time going through a years worth of statements and receipts so that I can give my state less money than they would have to pay me to hire me for that length of time?

Well, I went through my statements, and put in an accurate number, and you just watch - they'll audit me, the ******.
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The problem is enforcement and there is no practical way to enforce a use tax on indivisuals. It is mostly applied to businesses because of the paper trail and the fact they are more likely to deducte a purchase from out of state.

 
Originally posted by: YoshiSato
Originally posted by: prontospyder
iTunes charged me $1.69 in taxes when I bought 20 songs recently. Is the 'use tax' different from the tax I already paid?
Click to expand...

What state are you in?(very important for sales tax), if Itunes has a office in your state they need to charge you tax(I bet you in CA)


Use tax applies to goods puchased out side of the state but consumed in your resident state. This usually only applies if you did not already pay taxes on said item.

Meaning if you went to deleware which has no sales tax buy a case of beer, take it to VA and drink it in VA you need to pay a VA use tax. If you go to NC buy some beer and pay NC sales tax but drink the beer in VA, the beer is not subject to use tax.
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I'm in Colorado - we do have some Apple stores in the malls...

 
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