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bashamz Author

Level 1

8 points

iTunes 2 cent tax overcharge

On 03/16/2018 I purchased 7 songs from iTunes Store, listed at $1.29 each and my account was charged $9.75, $1.39 for each song and a mysterious extra 2 cents.

7 x 1.29 = $9.03

7 x 1.39 = $9.73

In chat support, Advisor said same thing listed in this thread (Apple iTunes overcharging on sales tax.) namely that it was my state's digital sales tax. State sales tax explains the extra .10 per song, but I pushed back on the .02. After a very long wait for chat response, Advisor said...

Airon

The total amount of the songs you have purchased is 9.75 USD with tax included The total amount of the tax added here is 0.72. So thats 25.00-9.75 = 15.25. There’s another .02 added here. Since a receipts hasn’t been generated we can’t tell what the other .02 added here. I would suggest contacting your tax office regarding the additional .02 with how your tax are calculated and being added to your digital items.

The extra 2 cents isn't from tax. What's going on Apple???

Posted on Mar 18, 2018 5:48 AM

Best reply

bashamz Author

Level 1

8 points

Posted on Mar 19, 2018 6:00 AM

Thank you ed2345. I finally got to the bottom of the taxes in my jurisdiction; state, county, city, and even a special tax total 7.96% tax rate.

Tax calculated on each song as it is purchased is

1.29 * .0796 = .102684 which rounds down to .10 so each song shows as $1.39

Tax calculated on total purchases for that day is

1.29 * 7 = 9.03 * .0796 = .7188 which rounds up to .72 and so day's total is $9.75

Thus, rounding per song vs. rounding for total day's purchases accounts for the mysterious 2 pennies.

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iTunes 2 cent tax overcharge

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