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(market place) uh....

833 Views 12 Replies 8 Participants Last post by  michaeltscott
Did I just get charged tax for buying MS points through the 360??
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No. The online rate is 80 points per dollar. 500 points is $6.25


Even though it says including tax on your final price, it doesn't add any.
Um...yes you did. I live in Austin as well and it charges me tax. I believe Texas is one of the few states that this occurs in. World of Warcraft did the same thing...
Guess I was wrong, but it doesn't show on my screen that way. It makes sense since MS has offices in Texas though.
Didin't show on the screen, but my credit card was charged 27 and change for 2000 points.
Quote:
Originally Posted by Axiom
Guess I was wrong, but it doesn't show on my screen that way. It makes sense since MS has offices in Texas though.
It's not just business offices--they have to have a brick-and-mortar retail presence for most states to be able to make them include internet sales to residents in sales-tax returns that they'd therefore have to file anyway. That at least used to be true in Texas. (A long time ago, after a massive downsizing, I briefly worked in the Texas Comptroller's office processing sales tax returns. Bad experience, but I loved Austin :D). Are there "Microsoft Shops" anywhere?
Searching on the MS website, I found this:


"In accordance with the Internet Tax Freedom Act, Microsoft charges tax in all states in which Microsoft has a physical presence. These states are: AL, AR, AZ, CA, CO, CT, DC, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, NC, ND, NE, NJ, NM, NV, NY, OH, OK, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, and WY."


That's a lot of physical presence. :)
46 to be exact. Would it not have been easier to state "Microsoft charges tax in all states except....." Maybe not...... :D
DukealexanZ (51)

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DukealexanZ, I think you posted that in the wrong thread.
Quote:
Originally Posted by Axiom
Searching on the MS website, I found this:


"In accordance with the Internet Tax Freedom Act, Microsoft charges tax in all states in which Microsoft has a physical presence. These states are: AL, AR, AZ, CA, CO, CT, DC, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, NC, ND, NE, NJ, NM, NV, NY, OH, OK, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, and WY."


That's a lot of physical presence. :)


I thought that only applied to retail locations when deailng with online orders. It makex sense that they have sales offices and such in many states but seeing as only business can purchase directly from MS it just doesn't seem right to be charged tax on this.
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Microsoft has offices in all major (and probably many not-so-major) cities out of which they sell services like on-premise IT consulting to businesses. Perhaps as part of those services they directly sell licenses to their software products, which would be subject to sales tax and thereby require the filing of state sales tax returns, making it necessary for them to charge sales tax on Internet sales to customers in those states.


I've lived in 13 cities in 11 states--one of those states didn't have any sales tax and it's not on the list: Delaware. I just looked it up and the remaining states are Alaska, New Hampshire, Montana and Oregon. (I remember NH and OR--I lived in MA and WA and people used to like to drive into those adjacent states for major purchases, to, I recall, major shopping located near their borders :)). Alaska is on the list-- this table indicates that while AL has no states sales tax, it does have city and/or county ones, whereas the other four states do not.


Who knows :rolleyes:?
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