Salex Tax on Subscriptions?

[Hippster]

Received a message on my TiVo today saying TiVo has expanded their presence in Kansas. Consquently they are now required to collect sales tax on all subscriptions and other sales to anyone in the state starting on or after August 20, 2008. Did this happen anywhere else? How many people have already been paying tax on their subscription? Kinda curious just how they expanded their presence here... cable company deals?

[jjberger2134]

Usually a physical presence in the state, such as a sales center, etc.

http://www.tivo.com/setupandsupport/myaccountandbilling/I_Have_a_Question_About_Sales_Tax.html

[David_NC]

Received a message on my TiVo today saying TiVo has expanded their presence in Kansas. Consquently they are now required to collect sales tax on all subscriptions and other sales to anyone in the state starting on or after August 20, 2008. Did this happen anywhere else? How many people have already been paying tax on their subscription? Kinda curious just how they expanded their presence here... cable company deals?

Probably they opened a store, office, warehouse, etc in the state.

The Kansas sales tax has probably always applied to their subscriptions and sales, but like most states, they cannot require a company to collect the tax unless they have a physical presence in the state. Technically, you were suppose to pay the sales tax to the state yourself. (In NC, we have a place on the state income tax form for paying sales tax on "out-of-state and mail-order purchases", not that anyone really pays much attention to it.)

There was some proposed federal legislation that would have required companies that did a lot of out-of-state transactions (like ebay) to collect the state sales taxes, but I don't think it ever got anywhere.

[astrohip]

How many people have already been paying tax on their subscription?
I have. Texas.

[cjw2001]

They have been collecting sales tax on Indiana subscriptions for several months now. Also got the same message before it took effect.

[GoHokies!]

I got the same message here in Maryland maybe 3-4 months ago, but I haven't seen the tax added onto the charges here yet.

[Rocketslc]

I just got the sales tax message for Utah. I doubt Tivo has a physical presence here. Utah just likes to tax everything (except kids)

[Brighton Line]

NY State and NY City sales/use tax collected here.

[DancnDude]

I got the same message last night in Wisconsin.

[Gai-jin]

IL Sales tax is only supposed to apply to actual sales, not services, so hopefully this won't be an issue here. In the past, I had a heck of a time convincing blockbuster they were wrong to be charging state sales tax on blockbuster by mail.

[nhaigh]

I've just got the message in NJ. I figured the most likely reason for this is they have employed someone who is going to work from home and lives in NJ. This would then mean they have a presence in NJ ans we then have to pay tax.

I think I read a thread about this a long time ago when the new CEO of TiVo lived in NY and commuted part of the week to CA. At that time the NY residents started paying tax.

Of course I think this will hit them in the pocket because (and I'm one) some people will reduce their commitment to TiVo. With the prices rising I have been looking at dropping one of my TiVo's and this I think will tip me over the line.

[rocko]

I just ran a mock sale through with my address in NJ and the total tax was zero for a unit and sub. Hmmmm :confused:

[MScottC]

We just got the same message here in NJ as well. I did not purchase anything since November of 2006 (The 2nd day of the Series 3 going on sale). And I pay the $6.95 MSD on it. The message implies I will not have to pay sales tax.

[jjberger2134]

The message implies I will not have to pay sales tax.

What exactly does the message say?

[nhaigh]

The message reads:

Dear TiVo Subscriber:
TiVo recently expanded its presence in the State of New Jersey. Due to New Jersey state law requirements, we must now charge the applicable sales tax on all TiVo monthly service contracts, including TiVo Packages (if you've purchased both a DVR and service together from TiVo.com), beginning on or after August 20, 2008.
Depending on your monthly billing date, you should see this this charge on your August or September service billing. Should you have any questions about the information in this message, please go to www.tivo.com/support or contact customer service at (877) 367-8486.

It does not matter when you bought the TiVo or how you bought it, it just means any service payments on or after 8/20 will have tax added to them.

[rocko]

beginning on or after August 20, 2008.


Well that explains that ... :(

Maybe I'l grab the Lifetime on my S3 prior to August 20 instead of December (when it's up for renewal) and save $21.

[mathwhiz]

Just got it in Michigan as well last week. Makes me wonder what TiVo did in Michigan. Maybe there is a new warehouse I can raid :D

[gastrof]

"What TiVo did in Michigan"? How's about "what TiVo did ALL OVER", since the message is being sent to people in several different states?