C
Capn Kranky
Guest
Okay ... before everyone gets a head of steam up let me explain. I know why EA allegedly instituted a sales tax or transaction tax on UO subscriptions. Apologies in advance to those outside of the US borders as this is not geared toward you ... but feel free to chime in!
I just read an article on ArsTechnica where there is debate about the Feds setting guidelines for states to tax downloads from the 'Net. Uh ... yeah.
Linky to article
One part of the article caught my attention and bold, colored or underlined stuff is my area of focus.
1. Is EA a retailer?
2. In each instance where a state tax is levied, does EA have buildings/offices in that state?
Example of when tax can be billed based on this: Virginia
We know that EA and/or subdivisions have brick and mortar presence, therefore players with addresses within the state may be taxed.
Example of when tax may not be billed: New York State
I have heard nothing that EA has any presence within state lines, thus New York residents should not be taxed. Or at least there is some level of weasel-room for not taxing subscriptions.
NOTE: It should be noted that the present tax percentage as levied for NY is NOT correct for all venues within the state and in fact is twice what the state tax levy actually is for sales tax (4%).
Discuss ... and I REALLY hope a mod could direct EA to peek at this one.
I just read an article on ArsTechnica where there is debate about the Feds setting guidelines for states to tax downloads from the 'Net. Uh ... yeah.
Linky to article
One part of the article caught my attention and bold, colored or underlined stuff is my area of focus.
Now, unless the ruling was overturned and I haven't yet spotted it, my question(s) is/are:... <snip> ... The Supreme Court's 1992 Quill v. North Dakota decision stipulated that states can't compel retailers to collect sales taxes for buyers unless the company has some kind of brick-and-mortar residence in the state. But this hasn't resolved everything. For example, Amazon pulled the plug on its affiliate program in Colorado after the state passed a law requiring the online company to collect sales taxes on Amazons' Colorado affiliates. These partners are physically based on those states, Colorado's logic went, and post links on their own sites to Amazon products, thus earning a share of the sale. ... <snip> ...
1. Is EA a retailer?
2. In each instance where a state tax is levied, does EA have buildings/offices in that state?
Example of when tax can be billed based on this: Virginia
We know that EA and/or subdivisions have brick and mortar presence, therefore players with addresses within the state may be taxed.
Example of when tax may not be billed: New York State
I have heard nothing that EA has any presence within state lines, thus New York residents should not be taxed. Or at least there is some level of weasel-room for not taxing subscriptions.
NOTE: It should be noted that the present tax percentage as levied for NY is NOT correct for all venues within the state and in fact is twice what the state tax levy actually is for sales tax (4%).
Discuss ... and I REALLY hope a mod could direct EA to peek at this one.