Sales Tax
Dino Gramps
Posts: 0
Is anyone else seeing sales tax added to purchases that never has before. I live in Illinois and should not be taxed. All of a sudden I see it today. Figures that this would happen over a weekend.
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I'm from Illinois and I'm seeing it as well. Since the Illinois Supreme Court emphatically stated that the state had no authority to levy such taxes, I don't know why that would be happening. Only companies with a retail point-of-presence (storefront) in the state are required to collect taxes. I don't think DAZ has packed up and moved from Utah.
Hopefully DAZ personnel will be able to fix or explain this by Monday at the latest.
Be sure and let us know what is going on. This is troubling.
Hopefully it's just a store glitch that needs fixing...
.. or they jumped into the furniture business. :P
http://www.dazfurniture.com/
I live in WA state. I get hit with every online sales tax known to man (M$, Valve, Amazon, Adobe, etc). They ALL have to have HQ here, don't they?! lol
Well, I had hoped that when the system kicked over the glitch would be kicked out, but that didn't happen. So no PC purchase today. I'm not risking getting kicked out of PC for the refund. I'll live without it.
I seem to recall this happening a while ago - different state(s) - and it had nothing to do with reality, just the "Alice in Wonderland" world that we find ourselves in because of the DAZ store and it's love for being mischievous on weekends. I hope that is the case this time.
BTW - I got kicked out of being an Amazon affiliate because of that stupid law. I am actually surprised that an Illinois court overturned it. I have no faith in this state. I would be out of here in a split second if I could and probably be able to reduce my heart and blood pressure medication. I'm sure Lincoln rolls over in his grave every day.
We all could be paying sales tax soon. Internet sales tax bill passed the US Senate in May with our Illinois Senator's sponsorship.
OK - back to bed.
As a Midwesterner I find it curious that so many people prefer your rain to the sun of California. Or is it not as rainy there as I am led to believe.
I've sent a query to DAZ about this, though no guarantee it will be picked up over the weekend.
No tax being levied to me and I am in California.
Amazon recently started charging taxes for Georgia because the stupid local store owners rallied to make taxes a requirement. :(
We added sales tax in IL because that is where our servers are hosted. We were advised that we should be collecting sales tax in IL since that, by many states apparently, is considered as having a physical presence there (the servers that drive the store and support to keep them working) and is the practice we did in other states we have had servers in before for the store. I know our accounting department was looking at if it was required in IL or not and I'll double check with them to make sure this wasn't turned on in mistake.
My understanding of what is going on with Amazon is that the are actually getting a physical presence in more states because of its same day shipping. (see last paragraph of article)
http://www.chicagobusiness.com/article/20130506/BLOGS08/130509833/senate-passes-internet-sales-tax-bill
Well, if that is the case, goodbye Daz. This state wastes my tax money and I don't think renting servers is a physical presence especially after the Illinois court ruling earlier this month.
Also - if you insist on going this way PC membership renewal should not be taxed as it is currently. We do not tax services and clubs in Illinois.
Don't forget Boeing. oh wait, they don't have retail stores. lol A lot of companies have offices in Washington State, especially in and around Seattle. Even Holland America Line cruises has an office in Seattle.
For some reason I thought that you lived in Europe.
Hopefully Daz stuff will give us another update soon.
The problem with this is that the ITFA (Internet Tax Freedom Act) prevents taxing internet based purchases unless a nexus exists. The problem is whether or not having a web server/isp in Illinois constitutes as having a nexus.
@Dino: I was actually born/raised in Phoenix, Az. I moved for 2 reasons- I met my hubby during his last few months at college there, and decided to move back with him after he graduated (Phoenix is a horribly uncultured place to raise a kid- you can only learn about the Indians so many times in your life)... and to get the hell away from the heat. As I got older, I developed these crippling headaches that would damn near put me on the floor in the middle of whatever I was doing. Needless to say, I haven't had those since moving.
I did have to go back for a couple years when I went back to school myself, during which the headaches came back. After coming back to WA, they stopped again (I still get them if I'm in "rainforest" type situations- ie: an indoor, very humid, water park).
@Starion: Might be my name. Vaskania is Greek (along with myself lol). :)
Well, if that is the case, goodbye Daz. This state wastes my tax money and I don't think renting servers is a physical presence especially after the Illinois court ruling earlier this month.
Wasting tax money is a time honored tradition in all Federal, State and Local governments. One of the better ways to waste 34 million dollars in state tax dollars is to add roundabouts on the main street of the village. The traffic study that it was based on was done by the NTSB 35 years before any construction began. Who cares that all the industries that created the traffic when the study was done are now closed and you can run down the center of main street at "rush hour" without encountering more than two cars. We needed to get rid of those annoying traffic signals and put in roundabouts. At least the local police and volunteer firefighters are busy...
Lets steer clear of the politics of the subject
OMG, and "we" didn't think that needed to be announced ?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I would suggest doing your own research. Contact your State Attorney General's office to get the information yourself, as they handle internet tax business questions. (They all went to Congress in May 2011 or 2010, can't remember which year.) Then you can hopefully confirm what DAZ is doing and have piece of mind. They will know exactly what should be done regarding nexus. http://illinoisattorneygeneral.gov/about/contacts.html
This was an interesting article about nexus.
http://www.amnavigator.com/blog/2011/03/24/can-location-of-web-server-constitute-tax-nexus/
When I looked at an online travel guide of Phoenix I noticed that there aren't a lot of tourist attractions in Phoenix. There is a zoo and a couple of museums there. I might go to Phoenix to visit the comic book convention. Only downside is that the next convention is in June during the summer. Why??
There is a desert botanical garden but I don't think it is next to a bus stop.
I do like the landscape views of the surrounding desert though. I saw a photo of Camelback Mountain. Hmm, I may render a scene of the southwest U.S. now.
When I looked at an online travel guide of Phoenix I noticed that there aren't a lot of tourist attractions in Phoenix. There is a zoo and a couple of museums there. I might go to Phoenix to visit the comic book convention. Only downside is that the next convention is in June during the summer. Why??
There is a desert botanical garden but I don't think it is next to a bus stop.
I do like the landscape views of the surrounding desert though. I saw a photo of Camelback Mountain. Hmm, I may render a scene of the southwest U.S. now.
That botanical garden is actually next to the zoo. lol If you do go to Phoenix in June, I have one word for you: Water. You cannot let yourself become remotely dehydrated there, or it will chew you up and spit you out.
Sedona is pretty and has a ton of redrock- very Indian cultured, but doesn't look like a cityscape wasteland like Phoenix does. Air is cleaner too.
Sedona is one place I do miss. I do miss Flagstaff as well, but eh, it's negligible since I'm in WA with Mt Rainier in my backyard. lol
When I looked at an online travel guide of Phoenix I noticed that there aren't a lot of tourist attractions in Phoenix. There is a zoo and a couple of museums there. I might go to Phoenix to visit the comic book convention. Only downside is that the next convention is in June during the summer. Why??
My guess is that the rates are cheaper in the summer.
My guess is that the rates are cheaper in the summer.
Phoenix also isn't the comic convention mecca. Come to Emerald City Comic Con for that. ;)
OMG, and "we" didn't think that needed to be announced ?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I have to agree here. Not even a sticky? Did you think people wouldn't notice? What the hell?
I have not heard about the Emerald City Comic Con before. Thanks for telling me that. Seattle also has a anthro/furry artist convention called RainFurrest.
I should follow this thread because I might move to Chicago soon. Then I will need to pay 9.25% sales tax.
Sections 2-2 and 2-3, which relate specifically to online sales, are currently unconstitutional and have been struck down. Since that was only two weeks ago, the statute database has not yet been updated.
Even if a server farm does somehow constitute a retail point of presence (I can walk up to the server farm and buy stuff?), DAZ software and products would appear to fall within the "canned software" exemption. ((PDF)Retailers Occupation Tax; Transfers of Data downloaded electronically) If those terms apply, tax is not charged.
And even if both of those conditions weren't true, we should still have been told about this before the taxes went into the system. Yes, there would still have been great agita -- this is an agita-prone forum, really -- but the response might have been a bit more ... tempered. (Well, OK, probably not, but it's still better to tell people about changes ahead of time than to have them find out at the last minute ... especially when they may have been unnecessary changes.)
The question "why now" keeps my brain spinning. The Illinois authorities are delivered a defeat in court and now you decide to CYA. And you think that customers are going to just rollover and pay it, when you don't even tell them what you are doing and why in advance? Do you not think that you have repeat customers who might notice. Are any of your employees in Illinois?
I spent a couple hours going to national online retailers of hard goods, soft goods, music, software etc, just to see if anything had changed with the sales tax situation. None are charging sales tax except those with brick and mortar in the state like Walmart or Best Buy.
Edited for TOS compliance
Although DAZ_Jon is able to answer some questions he isn't an accountant or a legal officer for DAZ, so he probably can't answer those questions (unless it's that DAZ recently switched servers, of course). As you can see, DAZ is aware that the questions are being asked but they may not be able to post a definitive answer until the beginning of the work week - and if they need to do additional checking over and above what they did initially it may not be immediately at the beginning of the week.
I can wait, but my money might not.
I have to agree here. Not even a sticky? Did you think people wouldn't notice? What the hell?
Yeah, I don't have too much of a problem with the Tax (now that there's an explanation for it) but this is not the sort of surprise I like.
I realize that DAZ_Jon isn't in accounting, but jeez. DAZ Communication once again proves to be somewhat less than stellar.
Any word on this yet? Is this IL tax going to stick?
We're still waiting for a final clarification on it from our accounting department. It looks like I was wrong on why the tax was put in place. It isn't that we have the servers there, but instead because we do have a couple full time employee that live and work remotely in IL so we technically have a physical presence there.