Proposed New York 'iPod Tax' - Could include Videogame DLC

[fantasticdan]

Link in OP is broken.

Is the proposal vague enough to tax MMO subscriptions? Would it be able to apply to foreign downloads, or downloads from US companies that have no physical presence in your state?

[archibaldcrane]

So state taxes are a protectionist anti-consumer tariff now? Awesome! Let's help out that poor, suffering GameStop.

It's a cute quip, but you can't ignore the reality that online shopping has hurt state and local sales tax revenues. Whether this is an acceptable loss is up for debate, but states have to pay for services and if they lose a portion of an income stream they need to come up with a new one.

[Ksandra]

It's a cute quip, but you can't ignore the reality that online shopping has hurt state and local sales tax revenues. Whether this is an acceptable loss is up for debate, but states have to pay for services and if they lose a portion of an income stream they need to come up with a new one.

^ this. I never really thought about it, but in reality it only makes sense. If you get taxed at the store, why wouldn't you get taxed online?

[Correction]

I'm just bitter because Calif. taxes are going up because stupid voters don't understand that when they sell bonds thanks to the endless stream of 'voter initiatives' every two years, it increases the debt burden and forces shitty taxes like this to keep coming up.

Spending cuts > tax increases.

[SephYuyX]

Good I say, maybe this will teach companies not to charge stupid amounts for DLC that should have already been in game.

[Quixon]

^ this. I never really thought about it, but in reality it only makes sense. If you get taxed at the store, why wouldn't you get taxed online?

You get taxed online if the place you're ordering from has a physical presence in that state. Now this being a state tax, how can NY State tax an item I'm buying from.... let's say California, assuming the place I'm ordering from has no physcial presence in NY.

[Saphirea]

Diet soda and iTunes are just the beginning.


* An "iTunes tax" of 4 percent on videos, music or pictures downloaded from the Internet.

* A 4 percent tax on taxi, limo and bus rides. That means a $10 cab ride would cost 40 cents more.

* A 4 percent entertainment tax on tickets to movies, concerts and sporting events. That would add nearly 50 cents to a $12 movie ticket or $1.80 to the cheapest $44.50 seat at a Knicks game.

* The tax on beer increases 24 cents per gallon, or more than double the current rate, which means about 30 cents a case.

* An 18 percent tax on nondiet soft drinks, which aims to reduce child obesity. A $1.50 can of Pepsi would then cost at least 25 cents more.

* A 4 percent tax on cable TV and satellite services, raising a $100 bill by $4.

* Hiking the cost of "personal" services - including haircuts, manicures, pedicures, massages and gym memberships - by 4 percent.

* A 4 percent sales tax on clothing and shoes under $500, except for two weeks out of the year.

* Elimination of the law that caps the state sales tax on gasoline at 8 cents per gallon.

* Boosting the average vehicle registration fee for drivers by $11, from $44 to $55. Fees for new or renewed licenses also would increase 25 percent, or increase from $50 to about $62 to renew a license over eight years.

In addition, all drivers would have to get new, "reflectorized" license plates at a fee of $25 each.

The plan also calls for the state to allow wine to be sold in grocery stores.

It would introduce video slot machines at Belmont Park.

New York could also join other states in their lottery games.

State officials estimate the plan would raise $4.6 billion annually - or the most in "revenue actions" in state history.

On the flip side, it calls for cuts of $9.5 billion, including radical reductions to hospital and school subsidies and the elimination of more than $1 billion in aid that City Hall hoped would help it weather the worst economic downturn in at least a generation.

Despite all the taxes and cuts, spending still would increase by 1.1 percent over last year's $119.7 billion budget.


So higher taxes and increased spending and still a higher budget than last year. How does this really help? I guess those NY'ers living close to the border will be going to Jersey to buy things.

[archibaldcrane]

how can NY State tax an item I'm buying from.... let's say California, assuming the place I'm ordering from has no physcial presence in NY.

You don't understand tax law.

If you buy an item online from an out-of-state vendor, you are still legally required to pay your state's sales tax on the purchase. However, you aren't charged sales tax on it at the point of sale, you are legally required to report the purchase on your state sales tax form. It's just something that pretty much everyone neglects to do, so the states are screwed.

Tax-free Internet shopping days could be numbered | News Blog - CNET News

Technically, of course, Americans in states with sales taxes are supposed to keep track of out-of-state purchases and cough up the necessary sales tax on April 15--the concept is known as a "use tax". But state tax collectors have long complained that in practice, that just doesn't happen, and that money has been unfairly left in taxpayers' pocketbooks.

[Ksandra]

You get taxed online if the place you're ordering from has a physical presence in that state. Now this being a state tax, how can NY State tax an item I'm buying from.... let's say California, assuming the place I'm ordering from has no physcial presence in NY.

Until they make it a state tax everywhere, I don't see this as an issue. Until cali in your example starts taxing you from buying from a store there, then I don't see the conflict.

In your example, it sounds like finding loopholes, for them it's common sense. At least that's how I see it.

[Deejay]

When you buy Microsoft points from a retail store, you pay tax on them don't you? If so, it would make sense to tax them if you buy them online direct to your account.

You don't get taxed when you purchase point cards, not even in stores. It's considered a service rather than an actual good. You also don't get taxed on things like WoW time cards.

[Qalbert]

^you most assuredly do. I buy a shitload of points as I am addicted to Rock Band DLC, and I pay regular sales tax on each and every card

[Deejay]

Well, here in Florida you don't. I'm 100% sure of it because all of the employees at my store bought a shit load of point cards during our 25% off employee appreciation weekend. (Only had to pay 14.99 for 19.99 MS Point cards) Still got the receipts to prove it.

[Quixon]

You don't understand tax law.

If you buy an item online from an out-of-state vendor, you are still legally required to pay your state's sales tax on the purchase. However, you aren't charged sales tax on it at the point of sale, you are legally required to report the purchase on your state sales tax form. It's just something that pretty much everyone neglects to do, so the states are screwed.

Tax-free Internet shopping days could be numbered | News Blog - CNET News

You caught me.... I just give my tax shit to my accountant and he takes care of it.

[Melena]

You don't get taxed when you purchase point cards, not even in stores. It's considered a service rather than an actual good. You also don't get taxed on things like WoW time cards.

Not true, I bought a Wii Points card for a friend that was 19.99 and after tax was $20.81. Maybe california is weird, but it was most definently taxed.

[Kazen]

Not true, I bought a Wii Points card for a friend that was 19.99 and after tax was $20.81. Maybe california is weird, but it was most definently taxed.

No its true, I sold some Xbox live point cards for $20 today, and they sell for $20.

[archibaldcrane]

I don't get taxed when I buy a $5 footlong tuna from subway, but if I get it toasted, then it's taxed, even though the toasting doesn't cost anything.

PIME TARADOX

[Tythera]

Definitely pay tax on both forms of Subway here, I'm getting ripped off

[Qalbert]

clearly it varies form state to state, in VA and apparently CA they do get taxed.

[Kohan]

^you most assuredly do. I buy a shitload of points as I am addicted to Rock Band DLC, and I pay regular sales tax on each and every card

Then you are being ripped off.

No matter what state you live in, you are not supposed to be charged tax on them. Ever.

And for the record, I am in CA.

[Qalbert]

three separate stores have charged me for them, so its standard fucking practice here in VA