Upload & Sell: Off
| p.2 #2 · Tax question -- whole package price or breakdown? |
I charge tax on the full package in CA, however I have heard in CA you only need to charge tax on physical, tangible items. I do business with many CA based companies that don't charge sales tax because they're not delivering a physical item (websites are a perfect example). Although CA is very strange with sales tax. Groceries aren't charged sales tax but a bottle has a $.10 CRV fee. Things transferred over the web aren't charged sales tax but an album is. I've also heard that if you do any sort of web transfer of an image, there's no need for sales tax. Again, this doesn't make sense to me because they're missing out on a lot of sales tax generated within the state. Although it's just like rent control. When you don't raise rents in a city like Santa Monica, you have people living in a 3 bedroom apartment paying $500 and then the new people who move across the hall have to pay $3500 to make up for the old renters. Of course I'm not a tax expert and am just repeating things I've heard.
Thats correct. When I talked to the state board they said that if all images are emailed/FTPed then no sales tax. I can also bring a hard drive to their house and copy files over and that would be fine. If I were to leave them with a hard drive to copy the images over & leave for the day and pick it back up I'd have to charge sales tax. Gotta love California