Should GameStop Charge Sales Tax On XBOX Live Memberships?
Reader Dave asks an interesting question. Should GameStop be charging sales tax on an XBOX live membership card? Generally speaking, only “tangible goods” are subject to sales tax, though every state is different.
Dave says he spoke to Romona at the IL Tax Dept. and confirmed that GameStop should not be charging sales tax on a subscription card. He also pointed us to this document, which doesn’t say anything about subscription cards, but does say that “prepaid telephone calling cards and other prepaid telephone calling arrangements,” are subject to sales tax. We suppose an XBOX live membership card is not wholly dissimilar to a prepaid calling card. Perhaps there’s been some confusion.
Are there any brilliant legal minds out there who can solve this one for us? Maybe Dave could sue GameStop like that toilet paper tax lady sued Kmart. That’s always fun.
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