Sales tax starting to apply to MMO subs in US!?

Eluwien

I sumbled upon the following :

http://www.camelotherald.com/news/news_article.php?storyid=3693

"Why am I being charged sales tax on my subscription?

 

Electronic Arts charges online sales tax for Dark Age of Camelot subscriptions. The reason for this is many U.S. states are implementing taxes on online subscriptions. The tax calculation will be handled using a system provided to us by Vertex."

 

I tied googling, but as non US recident I'm abit lost of where to go to find this kind of information. I posted and requested more information about this from the Herald, but naturally its going to take time.

Can this be confirmed, can more info be lurked? What states this is going to effect and how much this is?

Seems that EA has made single decission with DAoC to make taxation in that game for customer to be paid, but is this going to be the new trend in games past juvenile age?

Why is not Blizzard talking about this and why this is not discussed at all in relation with WHO?

 

tvalentine

im not sure what the sales tax % is, but if we do end up paying sales tax, it will only be another 1-2$ more im sure.

paulscott

If the publisher/developers do not have infrastusture in your state they can not charge sales tax.  While I'm not sure of the laws name I do know that it is in effect for atleast a few more years.

Although federal and state laws can occasionally contridict each the federal one obviously wins unless it goes to the supreme court and is ruled unconstitional(something that is probable with the law).

mk11232

Unless the feds develop and implement a comphrehensive taxing structure for online mmo subscriptions (which is extremely unlikely) then the state rules will govern.  States like CA and NY are trying their best to get a taxing system going for online services but I am unaware if any have enacted taxes for mmo's specifically.  Once a state does enact such a system, the publisher will have to charge those state's residents sale's taxes and send those on to the state.  Typcially sales tax range from 5-8% which will add $0.75-$1.20 to the total monthly fee.  If you wish to never see this extra tax added remember to get out and voice your opinoin to your local state reps and senators.

BroGamingPage

Originally posted by mk11232


Unless the feds develop and implement a comphrehensive taxing structure for online mmo subscriptions (which is extremely unlikely) then the state rules will govern.  States like CA and NY are trying their best to get a taxing system going for online services but I am unaware if any have enacted taxes for mmo's specifically.  Once a state does enact such a system, the publisher will have to charge those state's residents sale's taxes and send those on to the state.  Typcially sales tax range from 5-8% which will add $0.75-$1.20 to the total monthly fee.  If you wish to never see this extra tax added remember to get out and voice your opinoin to your local state reps and senators.

 

Maybe they can start putting sales tax on online gambling. Wait, that's why they outlawed it in the United States! The government couldn't get their greedy hands on online gambling and ruined it for everyone. Government is shit and so is politics. Free country. Ha. Ask Canadians if they are free and if they are well taken care of. I won't even get into that. I'm just sick of the Government trying to take money on everything we spend anywhere anytime.

Dracus

With the economic crisis with the US and some of its states, expect Sales Taxes to occur.

Hopefully not to the point of taxing players based on in-game wealth and property.  I wish I was joking about that, but the IRS has held conferences with that matter.

paulscott

Originally posted by Dracus


With the economic crisis with the US and some of its states, expect Sales Taxes to occur.
Hopefully not to the point of taxing players based on in-game wealth and property.  I wish I was joking about that, but the IRS has held conferences with that matter.

 

TOS says that the property isn't property of the players but actually of the developers.  Even in second life which prides itself on players owning the world the TOS still says that your character and inventory are property of the developers, However you retain any and all IP rights.

chrisleko

I can tell none of you live in a state that makes most of its money on tourism.

For all you say about taxes, there a great deal of things that taxes actually pay for.  Your roads, schools, public buildings, lotteries, a number of scholarships, and a great deal of other things are paid for by your taxes.  Police officers, etc.  With budget cuts coming down from the top, states need to find a way to make up the difference in income.  Ever wonder why you have to pay for your new vechicle tags?  It's a road tax.  The money goes to the upkeep of the major roads.  Sales tax on a mmo really isn't a big deal.  At most, as people have said, it would raise the price a few bucks.  I'm ok with that.

After all, I live in a state where I pay 6% or 7% on everything I buy...but I don't have a state tax to pay.  If you want to hear people comlpain about taxes, talk to New Yorkers (who live in The City).  They have city, state, and federal taxes they have to pay.

Ozmodan

So far, the only way a state can charge sales tax on any internet sales, is if they owning entity has a relationship in that state.  Congress has pretty much put the brakes on states extending sales tax to the internet.   So basically what EA is doing has no legal backing in most of the states.

Just another reason for me to avoid EA games.  It is run by a bunch of bumbling idiots.

grimboj

In the UK we're charged tax on pretty much everything, SOE messed up their billing system so that if I set my currency to USD then I can avoid paying tax.