Sales Tax
So recently we got word that Patreon has to start charging Sales Tax if a Patron lives in certain places, because those places are demanding tax even for digital or streaming "products". This is going to start July 1st.
Less than half of my Patrons will likely be subject to any sort of tax on their pledges, and the suggested amount is very little, but still... fuck that.
Patreon is allowing us to define what each of our tiers offers, re: benefits, as they relate to taxable goods, to make sure taxes aren't being applied where they shouldn't be. Pure support because you enjoy my work is tax exempt, for example. A digital download may be taxable depending on what state you live in.
Just so we're all on the same page, I consider 99% of each pledge here to be in support of my overall ability to continue working. And only 1% of the pledges are for the extra goodies I toss out every month.
So given that mutual understanding, only 1% if your pledge is taxable, at whatever rate applies in your area. 1% of a dollar is one cent. So if your area charges 4% tax, I guess they can have their 4% of a penny.
Comments (10)
While I’m fine with paying taxes to support societal needs, I share you anger at how jurisdictions are looking to do everything they can to avoid taxing their donors. And to avoid spending tax money on actual people. Put some headphones on your crotch because Fuck That Noise!
All sales tax should screw off. We already get taxed when we make money, it's called income tax. We should never have to pay sales tax after paying income tax. I'm so sick of being taxed twice on the same money. Especially if it's something like Patreon where we're literally not being sold anything.
I'm not particularly begrudging gov't taxes (a minority opinion, I know) but I've always just wanted to support the creators here, just because. I get everything I need just from the stories and the art, and any goodies that are "due" to me can go to someone who wants or needs them more. That probably doesn't help with how you handle this, but know that we'll always be here.
Uhm, patreon already charges a 21% VAT in the EU (plus PayPal charges a 10% comission on the EUR->USD conversion). Is there an additional tax ON TOP of that?
I think it might be something new, maybe US only?
I wonder if that will have any impact on the VAT I'm already paying to Patreon. Also, don't you need to be a particular type of IRS charity to be able to say that donations are tax-exempt? Of course, IANA(IRS)L (I am not an IRS laywer) or ever stept foot in the US of A, so I can't know for sure.
This is about the tax YOU'RE charged, not about the tax I have to pay on money I RECIEVE. I would need to have a special classification in order to be tax exempt, ie not pay taxes. But typically you don't pay taxes on donations you make, only when you purchase goods. They're just now trying to get their hands on money from digital stuff, basically.
More unrestrained government greed, figures. When I become one of your Bear Lieutenant's after you take over the world, I'm going to help you find all the people responsible for that crap so you can eat them. Perhaps if I do a sufficient job you may raise me to the ranks of Bear Colonel or even Bear General or something.
Hey, gotta do something to pay for all those corporate tax cuts. The wealthy aren't going to pay them, wouldn't be caught dead contributing to society, this we already know. So, who's left to nickel & dime?
There are goodies? ;-)