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Tax or ripoff on iTunes Store purchases?

Okay, this is a legitimate question.

Does iTunes charge sales tax on music purchases...including Ringtones? I am being charged, consistenly with five songs, more than 99 cents! but it's not the quality price of $1.29, either. Wassup with that????


Smoochie

Message was edited by: Host

MacBook 1.8ghz x2 512mb Combo, Mac OS X (10.4.7), Besides it sucks????

Posted on Sep 22, 2007 12:34 PM

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Posted on Sep 24, 2007 10:33 AM

Thanks. I went and checked my account and it is obvious I am being charged something akin to tax, too. Isn't there a federal law prohiting sales tax on net sales. You have to have physical store presence to be charged sales tax. iTunes should not be considered a physical store, even if it is owned by Apple. When did this change - because earlier this year with purchases I don't believe I was charged sales tax. I remember seeing my balance consistent with the 99cent deal.

Someone please explain how - or why - Apple is suddenly doin this without informing the purchaser of the cost of purchase!?!?!

Have a supercalifragilisticexpialidotious day
9 replies
Question marked as Best reply

Sep 24, 2007 10:33 AM in response to StarDeb55

Thanks. I went and checked my account and it is obvious I am being charged something akin to tax, too. Isn't there a federal law prohiting sales tax on net sales. You have to have physical store presence to be charged sales tax. iTunes should not be considered a physical store, even if it is owned by Apple. When did this change - because earlier this year with purchases I don't believe I was charged sales tax. I remember seeing my balance consistent with the 99cent deal.

Someone please explain how - or why - Apple is suddenly doin this without informing the purchaser of the cost of purchase!?!?!

Have a supercalifragilisticexpialidotious day

Sep 22, 2007 1:52 PM in response to Mk Smith

Mk Smith wrote:
Isn't there a federal law prohiting sales tax on net sale


No There is no such law. Sales tax is done on a state by state basis.

SALES TAX
iTunes Store purchases will include sales tax based on the bill-to address and the sales tax rate in effect at the time your purchase is completed. If the sales tax rate for the billing address changes before the purchased digital content is downloaded, the new tax rate in effect at the time of download will apply. We will only charge tax in states where digital goods are taxable. No customers are eligible for tax exemptions for purchases made on the iTunes Store.


http://www.apple.com/legal/itunes/us/sales.html

Sep 22, 2007 2:38 PM in response to Paul Judd

http://www.newrules.org/retail/inttax2.html

http://government.zdnet.com/?p=3222

http://www.eweek.com/article2/0,1759,1866715,00.asp

Something stinks, here.

Stating 'what' Apple does, is not an answer to its legality!

Still...not...answered...

...because...I wasn't being charged in the past!

Talk about "betrayed." Apple = Democrat = GREED!

My you have an interesting day!

Sep 23, 2007 9:16 AM in response to Mk Smith

Mk, I am also in Texas and am also charged taxes on iTunes Store and Apple Store Online purchases. The basic rule of thumb is that if a company has a "brick & mortar" store in Texas, they have to charge sales tax on on-line purchases. Apple isn't the only one that has to do this, Barnes & Noble, Performance Bicycle are a couple of others that I have dealt with in the same situation.

As far as your questions being deleted. I haven't seen your other posts, but if they continue in the same vein as your first sentence here, it doesn't surprise me much. A word of advice...ask your question without the attitude and follow the TOU and you will get your questions answered and not deleted.

Sep 24, 2007 7:19 AM in response to Mk Smith

Obviously you have 'attitude' towards Apple and it always their fault. Apple employees rarely answer posts in the Discussion Groups.

No one is censoring you except - You. There are Terms and Conditions that were agreed to prior to using the Apple Discussion Groups. It is your fellow users that usually do the policing and reporting of what they may feel is a inappropriate use of the Discussion Groups and violations of the Terms of Service.

That said - I have always been charged sales tax on all iTS purchases. My e-receipt of the transaction always show the 'tax' amount. It is a tax rule applied differently state to state. One state that I know of with no sales tax is Oregon. If you have an Oregon address then I suppose that you could get out of being taxed. There are web stores that sell from Oregon and don't charge sales tax as they are not required to do so. Give them a try if the sales tax is such a problem.

At the end of the day - it is not your questions that may be offensive - rather the manner in which they are presented by you.

MJ

Sep 29, 2007 5:20 AM in response to Mk Smith

In the days before internet, mail order catalogs purchases were also often taxed depending on the states rules. Usually if a business does have a physical presence (Apple store) in a state then they charge the sales tax. Some states require a sales tax regardless of their being a physical presence in a state. A a few states access no sales tax.

Tax or ripoff on iTunes Store purchases?

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