Join me every Saturday as I ask a Fun Question that’s been on my mind. I’ll give you my take, but I really hope you’ll jump in with your answers too, since I’m really curious to know what my fellow readers and bloggers think! So today’s question is…
Are you paying taxes for eBooks?
Alright, so this week’s fun question post is probably going to show y’all how clueless I can sometimes be. But I wondered if I was the only one who suddenly noticed that taxes were being applied to my eBook purchases. One day I was preparing one of my Sunday Posts and I was like, “what? that book was supposed to be $0.99!” So I looked. And it was, plus tax, making it $1.07. So I decided to look and see if this had always been happening and I just hadn’t noticed it. And I saw that eBooks I purchased in December 2012 had no taxes applied, but eBooks purchased in 2014 suddenly had them!
Ok – I’m not COMPLETELY clueless. I know about the “Marketplace Fairness Act” and actually think it makes a lot of sense to help local businesses compete with online retailers. For some reason, though, I assumed that things that can only be purchased online, like eBooks, wouldn’t have this tax applied. I guess I figured that this act was all about fairness and online retailers could all not charge/pay the tax. And since I was already paying tax on Amazon products that were shipped to my house, that kind of reconfirmed my understanding. But that was naive I guess.
So I did some research and wanted to share what I found with y’all, because as it turns out – some of you have probably been paying taxes on your eBooks a lot longer than I have! And some of you may be checking now and seeing that you don’t have taxes on your eBooks. The “Marketplace Fairness Act” allowed states to start enforcing specific laws that they have about the kinds of taxes different kinds of purchases should have. So some states, like Washington, have digital good sales taxes that are now being enforced on everything from music to ebooks. Florida’s now enforcing their tax on movie streaming, but eBooks still have no tax. Apparently Texas is one of those states where eBook taxes are now being enforced. Canadians, Europeans, Australians, et al? Well I have absolutely no idea about your tax system, but would love to know if you’re paying taxes on your eBooks.
If you’ve seen my Pinching Pennies posts you know that this tax has had zero impact on my decision to buy eBooks (or audiobooks, which are also being taxed now for me). I just wanted to know why it happened and I’m really curious to know if any of you have seen changes since the passage of the “Marketplace Fairness Act.”
And if you want more information on all this, I got most my information from this article at CNNMoney – “What an internet sales tax will cost you.” I did lots of Googling and it was by far the most helpful article.
Are you paying taxes on ebooks? I Am!