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Sales Tax

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  • MJ007MJ007 Posts: 1,701
    edited December 1969

    I was in the process of making a purchase and just noticed this myself. Hopefully, a determination will be made soon as I would like to take advantage of one of the sales currently going on.

    -MJ

  • ZelrothZelroth Posts: 910
    edited December 1969

    I did notice the tax a few days ago, but made my purchases any way since I wanted what I was buying and the way this country is going, I am not surprised by more and more taxes being applied. I might complain, but I try to be civil and do it just to vent. What I am venting about now is that there was no warning by DAZ unlike when they started charging another state tax. I guess they learned to try to keep a low presence from all the complaining then and hoped that this would pass unnoticed. But sorry, it was noticed. Better luck next time?

  • GhengisFarbGhengisFarb Posts: 173
    edited November 2013

    starionwolf said:
    Vaskania said:
    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

    Don't forget Boeing. oh wait, they don't have retail stores. lol .
    Fortunately, I don't buy that many planes. Well, real ones.

    Post edited by GhengisFarb on
  • NovicaNovica Posts: 23,905
    edited December 1969

    DAZ_Jon said:
    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.

    UM, well then THOSE employees can pay the sales tax for the hundreds of customers (or thousands) from Illinois. Seems fair to me.

    "According to Matthew Bobman, a CPA in New York City, employers can have their remote worker resign, form a C or S corporation and invoice them for work."

    Might not solve the problem but I highly doubt the state of Illinois is going to go after DAZ since they struck down the internet sales tax to begin with, didn't they?
    http://blog.wahm.com/2011/06/13/allowing-employees-to-work-from-home-may-cause-companies-tax-trouble/

  • fixmypcmikefixmypcmike Posts: 19,601
    edited December 1969

    That article is about corporate income taxes, not sales tax.

  • DAZ_JonDAZ_Jon Posts: 582
    edited December 1969

    I am not a lawyer so I have no legal opinion on the matter. As it currently stands according to our accounting department and the state of IL, we have to charge sales tax since we have a physical presence there. We have to do what we are legally obligated to do. Our accounting department is doing what they can with our own legal representation, but we have to comply with the law. For those that don't like the law, your state representatives would be the ones to contact to change it so we don't have to charge sales tax anymore.

    On a side note (and again, IANAL so this is all from what I read with my limited understanding), the IL decision about online sales tax wasn't on all online purchases, but was a decision made about Amazon, who does not have a physical presence in IL. It halted, essentially, a tax for all online shops, not shops which actually have a presence in the state. This ran contrary to a decision in NY, so odds are, the final decision on it is going to end up having to be handled by the Supreme Court. The decision, since we do have a physical presence in the state, does not apply to Daz unfortunately.

    If the requirement to charge sales tax in IL changes, we will immediately turn it off. However, until that time, it is what it is and the best way to get it changed would be to petition your state. If this thread just continues on a "You're terrible Daz for upholding your legal obligations" or ridiculous suggestions of Daz illegally charging their employees for the amount of sales tax and contain suggestions that we break the law, then this thread will be locked. As for not announcing it beforehand, we are sorry and we'll make every effort to improve our communication to customers negatively impacted by changes. It was, admittedly, done without the coordination and communication we strive for.

  • NovicaNovica Posts: 23,905
    edited December 1969

    Thanks for at least explaining it. I know, it's like "shoot the messenger."

  • MJ007MJ007 Posts: 1,701
    edited December 1969

    Crap! Totally missed out on the 3DU sale.
    Smh...


    -MJ

  • cwichuracwichura Posts: 1,042
    edited December 1969

    Charging IL sales tax will dramatically decrease the amount of purchases I make at DAZ3D. I've already skipped a number of items because of it, and it hasn't even been live a week. It may be the law, but that doesn't mean your customers are going to like or accept it. And DAZ can do something about it if they really want to, albeit it's rather evil and nobody likes to see folks get fired. I guess DAZ will have to see if continuing to employee telecommuters from IL outweighs the loss in revenue from sales in IL tanking. (I have no idea what % DAZ's total sales come from IL -- I guess how big is the Chicago population of 3D rendering consumers? Maybe IL represents next to nothing to DAZ, in which case they won't care about the lost sales at all.) Unfortunately, the greedy state legislature doesn't consider the fact that their goal to tax everything has actually resulted in a lot of lost jobs in IL. Take all the Amazon affiliates in IL that got dropped by Amazon, for example...

  • starionwolfstarionwolf Posts: 3,670
    edited December 1969

    MJ007 said:
    Crap! Totally missed out on the 3DU sale.
    Smh...


    -MJ

    Don't feel bad. I forgot to buy November Character for Victoria 4.

  • vwranglervwrangler Posts: 4,901
    edited November 2013

    cwichura said:
    Charging IL sales tax will dramatically decrease the amount of purchases I make at DAZ3D. I've already skipped a number of items because of it, and it hasn't even been live a week. It may be the law, but that doesn't mean your customers are going to like or accept it. And DAZ can do something about it if they really want to, albeit it's rather evil and nobody likes to see folks get fired. I guess DAZ will have to see if continuing to employee telecommuters from IL outweighs the loss in revenue from sales in IL tanking. (I have no idea what % DAZ's total sales come from IL -- I guess how big is the Chicago population of 3D rendering consumers? Maybe IL represents next to nothing to DAZ, in which case they won't care about the lost sales at all.) Unfortunately, the greedy state legislature doesn't consider the fact that their goal to tax everything has actually resulted in a lot of lost jobs in IL. Take all the Amazon affiliates in IL that got dropped by Amazon, for example...

    I don't think, overall, that sales tax is going to be that huge an amount of any individual purchase, although of course it mounts up -- 6.25% of $20, for example, is 15 cents. (Illinois Use Tax is 6.25%. Out-of-state vendors don't have to add in the municipal and county taxes, thank goodness.) It may result in some decrease in sales -- people do have individual budgets to consider -- but overall, not that large an amount in the aggregate.

    And honestly, if DAZ was unethical enough to fire people because of the sales tax issues, THAT would have more effect on my buying choices than the tax itself.

    If the requirement to charge sales tax in IL changes, we will immediately turn it off. However, until that time, it is what it is and the best way to get it changed would be to petition your state. If this thread just continues on a "You're terrible Daz for upholding your legal obligations" or ridiculous suggestions of Daz illegally charging their employees for the amount of sales tax and contain suggestions that we break the law, then this thread will be locked. As for not announcing it beforehand, we are sorry and we'll make every effort to improve our communication to customers negatively impacted by changes. It was, admittedly, done without the coordination and communication we strive for.

    I am glad to hear what's happening and why, and I do hope DAZ improves its communication with users. My own objection was to the Surprise! aspect, more than the tax itself.

    Sadly, appealing to the local assemblycritters is much like hitting your head against a wall. It makes your head hurt, and the wall doesn't notice.

    Post edited by vwrangler on
  • redhorseredhorse Posts: 83
    edited December 1969

    vwrangler said:
    (Illinois Use Tax is 6.25%. Out-of-state vendors don't have to add in the municipal and county taxes, thank goodness.)

    Thank goodness indeed. The full sales tax is 9.0% where I live (a Chicago suburb): 6.25% State, 0.75% Cook County, 1% City, 1% Special District Tax.

  • MJ007MJ007 Posts: 1,701
    edited December 1969

    vwrangler said:
    I don't think, overall, that sales tax is going to be that huge an amount of any individual purchase, although of course it mounts up -- 6.25% of $20, for example, is 15 cents.

    6.25% of $20 is $1.25... not .15 cents.

    -MJ

  • vwranglervwrangler Posts: 4,901
    edited December 1969

    MJ007 said:
    vwrangler said:
    I don't think, overall, that sales tax is going to be that huge an amount of any individual purchase, although of course it mounts up -- 6.25% of $20, for example, is 15 cents.

    6.25% of $20 is $1.25... not .15 cents.

    -MJ

    Oh. Duh. Well, nobody said my math brain was all that great. One too many decimal points to the left, more or less.

    So it is going to be a rather larger amount of any individual purchase, and may or may not cause more people to back off larger purchases. (The tax on something like the M6 Pro Bundle is probably going to be near to $3-4 or so, given the typical release-day price of those sorts of bundles.)

    That said, I still can't see deferred or declined purchasing due to one state's tax making a huge difference to the DAZ bottom line. A more noticeable amount, possibly. Nonetheless, it would have to be a fairly epic amount for them to decide to fire people, and they'd be fairly reprehensible for doing so.

  • JoeQuickJoeQuick Posts: 1,718
    edited December 1969

    Are taxes gone again?

  • redhorseredhorse Posts: 83
    edited December 1969

    Apparently. They didn't add any to my last purchase.

  • MJ007MJ007 Posts: 1,701
    edited November 2013

    Smh... and once again... no notifications about it.

    -MJ

    PS: Even worse, I missed out on a nice sale because of this.

    Post edited by MJ007 on
  • Robert FreiseRobert Freise Posts: 4,481
    edited December 1969

    Reminds me of when they got added for Texas unfortunately they still exist

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