Music Direct Tax Policy

Interesting, I just ordered some stuff and noticed I was taxed 8% instead of 6% that my county charges.

Their explanation: we charge the highest tax rate based on ZIP code, and have no way to split out tax jurisdictions by county! So the county across the river that shares our ZIP code has a higher tax rate and I'm stuck paying it.

I told them they need to update their tax software. No one else has problems with county jurisdictions.

I was tempted to tell them to keep their order. I will think long and hard about future business with them.

Caveat emptor.

 

Be thankful you are not in some areas of Calif with a 9.75% tax rate. "California, where we tax our way to prosperity".

 

Amen to that.

M~

 

Cheaper than Cook County.

 

Tell Music Direct you don't want it then. Tell them to keep it. Surely you can buy the same item from someone else.

OR

Tell Music Direct because of their one size fits all zip code policy they should reduce the price of the item by the additional 2% charge.

By the way, don't they have your mailing address? Or is Music Direct sending the item to your zip code?

One other thing who gets the extra 2%? Is it even legal to charge more tax than the actual sales tax for where you live?

 

Is it common for a ZIP code to include multiple counties, and for different counties to have different sales tax rates? I just wonder if this might be a problem that very rarely even comes up, so they haven’t been prompted to find a solution. I would be inclined to think they can adjust something if you call and talk to them, maybe just issue you a refund for the overpayment?

 

Try 10.1% in Seattle.

 

8.9% in a suburb of St. Louis, MO.

 

I woulda told them to stuff it but the item was a demo close out on a Cardas power cable that was 49% off.

Tax software exists that takes these contingencies into consideration. Time for an upgrade.

If I had a cart full of stuff that was several thousand dollars I'd push back hard.

 

It is fairly common. We have at least one case here where part is in Sacramento County and part is in the city. In another situation, a retailer here in California will charge their local rate, even though it is being delivered in a lower rate area. The State Board of Equalization makes them file a crazy amount of paperwork for the lower rate-for EACH transaction which makes it infeasible for the retailer

 

I'll pay your state taxes if you pay mine.

M~

 

Same here in AZ where the dummy politicos would rather have a high sales tax rather than higher income taxes. Sales taxes are the most regressive of any taxes levied and effect the poor and middle class far more than income taxes or property taxes.

In the city next to mine the median sales tax is 10.25% and they tax unprepared food!

 

Interesting, I just thought ZIP codes were more narrow geographically than that. The fairly small city I used to live in has three ZIP codes, and the very small town I now live in has its own. I would have expected ZIP code to be precise enough for sales tax determination, but I guess it’s not.

 

Zip codes are a lousy way to implement taxes or other costs. In my example, my zip code registers as New Orleans, yet no portion of it is actually in New Orleans or Orleans Parish. I have never had it impact online taxes, but I have had it affect insurance rates and have gotten quotes that were much higher as it showed us living in "the city" rather than the very safe suburb where we reside.

 

Try 13% in Ontario.

And add the punishing conversion rate for some extra fun!

 

Do they still have beavers on the nickels up there?

 

Shouldn't this be in "Off Topic?"

 

No, Marketplace Discussions. I'll ask for that.

 

Yep. If something ain't broke...

 

Last time I was up there though, I noticed they took the children playing hockey off of the $5?

 

Are you in IL?

 

Higher income are already paying a higher tax simply based on their income being higher.

I'm paying state and federal income tax on investment income, an absolute joke.

 

It wouldn't surprise me if they had no such limitations in their processing related to their submission of collected taxes to the various jurisdictions, which of course would mean that the 2% stays in their pocket.

I'm reminded of an even simpler "mistake" I saw from a couple of retailers in NJ for a while after the last state sales tax decrease (not a typo) of 1/4%, where they were still charging customers the higher tax rate. It adds up for the merchant.

Doug

 

Ouch...

 

I have a long standing relationship with Music Direct that I really appreciate and want to continue to be a good customer of theirs, however, I to am irked buy being overcharged for sales tax due to their highest in the county method. In this day and age it makes no sense, there is plenty of software out there that does it by ZIP code which is accurate 99% of the time. I wonder if it is hurting their bottom line yet when casual business goes elsewhere due to being overcharged.