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This might actually be legitimate. In the US, we have several basic tax jurisdictions. Going from the "top" (biggest/Federal) down: Federal > State > Coun
by MrWiffles 5y ago
This might actually be legitimate.
In the US, we have several basic tax jurisdictions. Going from the "top" (biggest/Federal) down:
Federal > State > County > City > Transit/Local Area
There's no federal (nation-wide) sales tax in the US, but each state has their own state-wide sales tax, each county WITHIN each state has their own sales tax on top of that, each city WITHIN EACH COUNTY has their own sales tax on top of that, aaaaaaand some areas of some cities have specific sales tax rates only in those particular areas that differ from other areas ON TOP OF THAT!
This is totally separate from any federal or state income taxes. Entirely different/separate topic.
So for example, I live in Texas. Here's how sales tax breaks down in my county:
State: 6.25%
County: 0.5%
City: 1.0%
Transit/Area: 0.5%
TOTAL: 8.25%
Spotify would have to know your specific address - not just your ZIP code, but the actual "point of purchase" (per law, internet sales point of purchase is defined as wherever the CUSTOMER is when they give you money, no matter where your business is located) - in order to look up the right tax rates to charge so they don't overcharge you, but also so they don't under-charge and under-report, thus incurring the wrath of state and local comptrollers everywhere.
Do a search here for further examples:
https://mycpa.cpa.state.tx.us/atj/search https://mycpa.cpa.state.tx.us/atj/search