Steam charging sales tax twice? Used steam since day 1 and now considering never buying games here again.

[Anaconda]

Hello,
Has anyone else had issues with Steam charging sales tax twice? I normally buy games on Steam when I buy Steam Wallet Fund cards and then add them to my account because I don't feel secure giving out my credit card information. Each time I buy a steam wallet card, I get charged sales tax, so I assumed that covers the sales tax for purchases I make, IE, I buy a 50 dollar card, I get charged 54 and add 50 to my account. Now, Steam wants me to pay separate sales tax on top of the tax I already paid for any game I want to buy? I used Steam since it launched and generally never had a problem, but this is completely ridiculous. I emailed support, but the guy who responded didn't even read my message and just said "Steam collects sales tax". Yes, I know. Collects sales tax twice.

Anybody else having this issue?

[Spawn of Totoro]

Steam only applies tax during the checkout process. A $20 Steam Wallet card at the store should only cost $20. Where ever I go, I only pay face value for the Steam Wallet Cards.

If the store you are buying from is charging more, then that has nothing to do with Valve.

[Anaconda]

Ive bought Steam Cards at two different stores and they both charged me sales tax. Valve is clearly pocketing the second sales tax charge or wants us to use credit cards, which is extremely unsafe as Ive heard of plenty of people who had their card numbers swiped from here.

[Anaconda]

I think Valve has gotten so big with Steam that they no longer care about what they do, that's why their customer service is so rude and awful, it's starting to show in shady business practice too. I guess this is what we get for foregoing brick and mortar for the convenience of digital.

[Snapjak]

If the stores are charging you tax that's on them not Valve.

Valve doesn't even sell the cards they're done by a third party.

[Spawn of Totoro]

Originally posted by Anaconda:

Ive bought Steam Cards at two different stores and they both charged me sales tax. Valve is clearly pocketing the second sales tax charge or wants us to use credit cards, which is extremely unsafe as Ive heard of plenty of people who had their card numbers swiped from here.

I purchased one just today and was not charged any sales tax. I get them for my son.

I, myself, have always used a credit card and have never had it's never swiped.

If the cost of the card is say $24, but the fact is $20, then it is the store charging more. Valve doesn't even get the full $20, they get about 90% of that as the rest goes to the store.

So, again, Valve only collect sales tax when making a purchase on Steam.

Originally posted by Snapjak:

If the stores are charging you tax that's on them not Valve.

Valve doesn't even sell the cards they're done by a third party.

Exactly.

I have heard of store charging more, but those are often grey markets and Amazon.

[Anaconda]

But the funds of the card go directly to valve, the store just resells them. Valve is making $54 on every $50 card and then collects the taxes afterwards. Absolutely ridiculous business practice, now that they have go us all buying games on Steam, they realized they can do whatever they want because there's no alternatives. I can't believe people are this willing to pay a second tax charge just to buy games on Steam.

[nullable]

Originally posted by Anaconda:

Ive bought Steam Cards at two different stores and they both charged me sales tax. Valve is clearly pocketing the second sales tax charge or wants us to use credit cards, which is extremely unsafe as Ive heard of plenty of people who had their card numbers swiped from here.

1. So your belief is Valve is breaking the law in regards to sales tax collection? Big assumption, got any facts to support that?
   
2. Credit cards aren't unsafe. People often don't know where or how their cards were compromised. But people are very good at assumptions... and some people are very good at believing anything they've been told if it's convenient enough.
   
3. People are also quite careless and reckless and are almost always the weakest link in whatever account security we're talking about. So that's what scammers and thieves the world over target.
   
4. Credit cards have very good fraud protections and consumer protections. Much better than debit cards, or giftcards.

[Spawn of Totoro]

Originally posted by Anaconda:

But the funds of the card go directly to valve, the store just resells them. Valve is making $54 on every $50 card and then collects the taxes afterwards. Absolutely ridiculous business practice, now that they have go us all buying games on Steam, they realized they can do whatever they want because there's no alternatives. I can't believe people are this willing to pay a second tax charge just to buy games on Steam.

No, they are not. Valve only get 90% or so of the value stated on the card. The rest goes to the store and the company who makes and processed the cards for Valve.

[Anaconda]

The cost of a $20 card is not $24. It's $20 and then sales tax is charged because stores have to charge tax for every purchase except essential necessities. I don't trust Steams security methods, when you try to add a card, you can see the digits you are typing, they aren't starred out like on secure websites. When they are typed out in the open like that, any hacker running a remote desktop hack can easily see, write down and swipe your card. Maybe Valve should update it's security to a model that's not from 1999.

[Anaconda]

"So your belief is Valve is breaking the law in regards to sales tax collection? Big assumption, got any facts to support that?"

Please read the posts before replying. If you went to a Target to buy a $200 tv and they charged Sales Tax two times on the receipt, wouldn't that be breaking the law? You can't collect extra money, claim it as a tax and keep it. Even if you are letting a third party keep it.

[Spawn of Totoro]

Originally posted by Anaconda:

The cost of a $20 card is not $24. It's $20 and then sales tax is charged because stores have to charge tax for every purchase except essential necessities. I don't trust Steams security methods, when you try to add a card, you can see the digits you are typing, they aren't starred out like on secure websites. When they are typed out in the open like that, any hacker running a remote desktop hack can easily see, write down and swipe your card. Maybe Valve should update it's security to a model that's not from 1999.

Stores have never charged sales tax on gift cards. Taxes are sent from Valve when you make the purchase, to where your billing information lets them know to send to.

Every site I have ever used, never starred out the CC number, not even Amazon. It is encrypted when you send it, not as you type it up.

Originally posted by Anaconda:

"So your belief is Valve is breaking the law in regards to sales tax collection? Big assumption, got any facts to support that?"

Please read the posts before replying. If you went to a Target to buy a $200 tv and they charged Sales Tax two times on the receipt, wouldn't that be breaking the law? You can't collect extra money, claim it as a tax and keep it. Even if you are letting a third party keep it.

If it is showing under Tax, then it is the business you are buying from that is breaking the law, not Valve. Valve only gets about 90% of the cards value, nothing more.

As I said, I purchased a card just today and it only cost me $20, no tax.

[Anaconda]

" It is encrypted when you send it, not as you type it up."
So that means not protecting users when it's being typed in where most of the theft and hacking happens?

"If it is showing under Tax, then it is the business you are buying from that is breaking the law, not Valve.

As I said, I purchased a card just today and it only cost me $20, no tax."

Then the business is either breaking the law, by selling a product and not charging tax, or maybe your state tax laws are different. I live in NY, retailers have to charge tax on everything physical unless its an essential. The only way you can get $20 in funds without paying a fee is if you go to Gamestop and buy wallet funds that they process digitally and give you a receipt. Any store that actually has a physical, cardboard card is obligated to charge sales tax.
If I have to go to Gamestop to buy Steam funds, why wouldn't I just pick the game up from the shelf then? Makes no sense.

[Spawn of Totoro]

Originally posted by Anaconda:

" It is encrypted when you send it, not as you type it up."
So that means not protecting users when it's being typed in where most of the theft and hacking happens?

Are you not keeping your system safe and secure? Valve can't secure your system, where you type things out, for you. If they can get your CC from it, then they can get your log-in and password, even if the password is starred out, as long as your system is compromised.

Valve encrypts the connection, same as any website does, when you send the information.

Originally posted by Anaconda:

"If it is showing under Tax, then it is the business you are buying from that is breaking the law, not Valve.

As I said, I purchased a card just today and it only cost me $20, no tax."

Then the business is either breaking the law, by selling a product and not charging tax, or maybe your state tax laws are different. I live in NY, retailers have to charge tax on everything physical unless its an essential. The only way you can get $20 in funds without paying a fee is if you go to Gamestop and buy wallet funds that they process digitally and give you a receipt. Any store that actually has a physical, cardboard card is obligated to charge sales tax.
If I have to go to Gamestop to buy Steam funds, why wouldn't I just pick the game up from the shelf then? Makes no sense.

Gift cards are not taxed is most place.

https://nystax.custhelp.com/app/answers/detail/a_id/2085/~/if-i-buy-a-gift-certificate-in-new-york-state%2C-do-i-have-to-pay-sales-tax%3F

If I buy a gift certificate in New York State, do I have to pay sales tax?
No. However, if you use your gift certificate to purchase a taxable product or service, you must pay sales tax on the full selling price of the product or service. See TSB-A-99(13)S advisory opinion and TB-ST-806 regarding the taxability of gift certificates.

In NY, you do not have to pay taxes on gift cards.

[Anaconda]

"Are you not keeping your system safe and secure? Valve can't secure your system, where you type things out, for you. If they can get your CC from it, then they can get your log-in and password, even if the password is starred out, as long as your system is compromised."

My system is safe and secure as far as I know, but you can't always know with certainty, 100% that your system is not compromised in some way. By the time you find out, it'll be too late.

"In NY, you do not have to pay taxes on gift cards."
If they are digital codes, like in Gamestop, you don't. But if its a physical code just on a piece of cardboard, the tax is charged. It's been like that in NY for years.

[nullable]

Originally posted by Anaconda:

" It is encrypted when you send it, not as you type it up."
So that means not protecting users when it's being typed in where most of the theft and hacking happens?

If your credit card is being compromised from typing it into a form before submitting it. It means you're inputting it into a phishing site, or your machine is compromised. You're really grasping at straws and just making convenient assumptions as you go. But you don't really understand what you're talking about. You feeling like it's plausible does not an informed argument make.