Should states be able to charge sales tax or a digital goods tax on online purchases ie microtransactions, game pass, console subs, or alt currency?

[UF_C]

State legislatures are beginning to look closely at game financial models and how they may be skirting taxation on goods purchased within their state borders. So what do you think? Should you be required to pay sales tax on buying that new fortnight skin or for the season pass? Should buying keys to loot boxes also be subject to a sales or digital goods tax? How would this even be accounted for and remitted?

State budgets are continuously stressed and government is looking at new ways to build up their coffers. Should all of the microtransactions that have seeped into modern gaming (including gamepass or PSNow or PSPlus) be subject to a tax?

 

[delete12345]

State legislatures are beginning to look closely at game financial models and how they may be skirting taxation on goods purchased within their state borders. So what do you think? Should you be required to pay sales tax on buying that new fortnight skin or for the season pass? Should buying keys to loot boxes also be subject to a sales or digital goods tax? How would this even be accounted for and remitted?

State budgets are continuously stressed and government is looking at new ways to build up their coffers. Should all of the microtransactions that have seeped into modern gaming (including gamepass or PSNow or PSPlus) be subject to a tax?

Click to shrink...

I think it is fine, so long as I can deduct them for tax returns.

 

[Musubi]

I think taxing online purchases is kind of bullshit tbh. For the longest time my state didn't require taxing digital purchases which was nice being able to buy games on PSN for a flat $60 instead of $63 with taxes added on.

 

[RedOnePunch]

Not really. Recently eBay started charging sales tax and that's been really shitty.

 

[Knight613]

Some states already do this. And just like how some states don't charge tax on clothing or uncooked food, it's up to states to decide if they want to tax digital goods.

 

[delete12345]

Some states already do this. And just like how some states don't charge tax on clothing or uncooked food, it's up to states to decide if they want to tax digital goods.

Click to shrink...

Yep, hence I advocate for tax deductibles for online purchases.

 

[Hero Prinny]

Fuck that

 

[DontHateTheBacon]

The annoying part is that it makes the PSN/XBL/eShop cards they sell that are the exact amounts of the most popular prices a pain in the ass because now you need to buy a $60 card and a $10 card, or a $25 card and a $10 card, etc etc.

I'm fine with paying the tax. I hope the platform holders take this into account and update their card amounts respectively.

 

[TitanicFall]

I don't like it. If the state had anything to do with facilitating my online transaction then it would be in the form of a regulatory tax my ISP charges.

 

[Deleted member 17210]

Fuck sales tax in general. Taxation should only be based on income.

Canada already has sales tax for some digital games (like Nintendo's eShop, where you need to input your province).

 

[Angelus Errare]

It's stupid and the arguments for it barely make sense.

 

[eonden]

Never understood what makes a digital good different from a physical one that makes it not being taxed. All places I have lived in have taxed digital purchases since like forever.

 

[Shoichi]

some states already do this, so its already occurring.
While I don't like it, I think they should charge for it if other goods are charged the tax. The only difference in the end is physical vs digital goods.

 

[Patapuf]

?? Sales tax is for all goods. Why would digital be exempt ?

 

[kirby_fox]

I'm already paying this. Considering digital goods are often replacing physical, I don't see what the problem is.

 

[LegendofLex]

I don't really care since I'm not really anti-tax, but I still think it's bullshit that advertised prices (including online/digital goods prices) don't include tax.

 

[Version 3.0]

Nobody wants to pay tax, but let's be honest: sales tax should apply to all purchases. There's no reason that any exceptions should be handled based on the purchase format.

Now, if you want to argue that sales tax itself is bullshit, you have my sword. But that's a very different discussion.

So yes, currently, sales tax should apply. Digital purchases should never have been exempt from sales tax in the first place.

 

[Vivian-Pogo]

Should they be able to charge? As long as sales tax is a thing, then yes.

Do I like it? No.

I thought just about everyone in the US was already paying taxes on digital games and DLC and stuff?

 

[Deleted member 56752]

Should they be able to charge? As long as sales tax is a thing, then yes.

Do I like it? No.

I thought just about everyone in the US was already paying taxes on digital games and DLC and stuff?

Click to shrink...

This.

 

[J_ToSaveTheDay]

I only find it inconvenient that the digital currency cards no longer cover the cost of a game now. I have no issues with the core notion of charging sales tax for digital goods though.

 

[LavaBadger]

Yep, hence I advocate for tax deductibles for online purchases.

Click to shrink...

On what grounds should it be tax deductible?

Should they be able to charge? As long as sales tax is a thing, then yes.

Do I like it? No.

I thought just about everyone in the US was already paying taxes on digital games and DLC and stuff?

Click to shrink...

Yes, they are taxed in most states. Some have taken longer than others to get around to it. Even when it wasn't included, there were plenty of states where you were supposed to self report, but you can imagine how few people did that (And for good reason beyond just not wanting to pay; it's a record keeping nightmare).

 

[Bomblord]

Should be handled like sales tax on any other product. I won't complain if my State decides its exempt for whatever reason but I don't see why they would.

 

[Fadewise]

Taxes are the price we pay to live in a civilized society. Don't like it, move to Rapture...

 

[Chaosblade]

Should they be able to charge? As long as sales tax is a thing, then yes.

Do I like it? No.

I thought just about everyone in the US was already paying taxes on digital games and DLC and stuff?

Click to shrink...

This. Sales tax isn't good in general because it's regressive, but if it's going to exist the only exceptions should be essentials like food, not digital video games and microtransactions.

 

[Deleted member 6582]

States should not tax things that are cross-state. Digital items should be taxed at a national level, that's exactly what the commerce clause is about.

 

[Chessguy1]

my friend set his address to oregon to get around digital sales tax.

disgusting.

 

[Razgriz417]

Been paying sales tax for years, guess OP is in a state that hasn't done it yet

 

[Lunchbox]

my friend set his address to oregon to get around digital sales tax.

disgusting.

Click to shrink...

Me too even when I didn't live in Oregon.

 

[Daniel Westlake]

Of course

 

[DanteMenethil]

Why is sales tax even a thing, it doesn't take into account income.

 

[TechnicPuppet]

Sales taxes are regressive. Id rather income and wealth was taxed.

Not sure what makes a digital item different from anything else though.

 

[Pyro]

I'd rather not have another tax

 

[samred]

this feels like more of an EtcetEra conversation, since tax structures are such a beast to unpack.

the short version: if you live in a state that lacks its own income tax (Washington and Texas come to mind), and you're asking citizens to pay their fair share of state infrastructure cost, then you're getting into territories like sales tax on any and every purchase made by those very citizens. and then you're going down the rabbit hole of how regressive taxes famously put a greater tax burden on lower-income populations, or the OTHER rabbit hole of libertarianism... and it doesn't get easier to chat about from there.

my take, personally, is that individual states should tax their citizens fairly to pay for statewide costs. whether ANY sales tax is the ideal way to go or not is certainly not something I'd answer with, like, "everything BUT online video game sales."

 

[LavaBadger]

my take, personally, is that individual states should tax their citizens fairly to pay for statewide costs. whether ANY sales tax is the ideal way to go or not is certainly not something I'd answer with, like, "everything BUT online video game sales."

Click to shrink...

And thus, a whole new generation of single-issue-voters rises up, chanting, "Not my video games."

 

[Deleted member 48897]

I do not love the sales tax as a means for the state to collect revenue but if you're going to do one I don't see why video games of all things should be exempt. We're not talking food or shelter or anything like that.

 

[iksenpets]

I don't really see any argument for it not to fall under sales tax, other than we just hadn't bothered to update the laws yet and people who buy games online would prefer if we just forgot to. It's not like online software purchases are somehow socially beneficial or necessary in a way where we'd want to exempt them, in the way some states exempt groceries. And it doesn't really seem fair to someone who spends all their income on necessities and pays taxes on most of that, that people who buy games online are getting a tax break on their spending. And in theory, it opens up a loophole where devs could avoid taxes altogether by selling exclusively online. There are lots of arguments about whether or not sales taxes in general are good, but regardless of those, a sales tax that exempts digital purchases is worse than one that doesn't.

 

[UltraMagnanimous]

Yes, all sales, digital or physical should be liable to sales tax unless as a society you want to incentivize or subsidize certain goods or services, e.g. childrens clothes, or fresh fruit and vegetables, and zero rate them. My only issue is that it's not a progressive tax.

 

[ShinUltramanJ]

Already happening in my state. Sucks that my digital purchases are taxed now.

 

[EvilChameleon]

I have always thought that digital goods should be tax-free.