Steam started taxing me?

[鬼 (oni)]

Hi, I live in California and beginning around March 2022 Steam started taxing me on games. Before there were no digital sales tax. What happened?

[feytharn]

California started collecting taxes for digital sales. Valve has to comply.

[Chompman]

Also remember that just because a store did not charge you online tax more then likely you were required to had reported any purchases you did before on your taxes to pay your fair share.

This is why most states closed this loophole awhile ago.

[Spawn of Totoro]

Originally posted by 鬼 (oni):

Hi, I live in California and beginning around March 2022 Steam started taxing me on games. Before there were no digital sales tax. What happened?

I live in California and just made a purchase today. I was not charged sales tax.

Regardless of where you live, Valve uses your billing address to determine if you pay sales tax or not. Does your bank/payment account not have a California address associated with it?

[鬼 (oni)]

Originally posted by feytharn:

California started collecting taxes for digital sales. Valve has to comply.

I had a feeling but couldn't find an answer on google, thanks for confirming

[Chompman]

Originally posted by Spawn of Totoro:

Originally posted by 鬼 (oni):

Hi, I live in California and beginning around March 2022 Steam started taxing me on games. Before there were no digital sales tax. What happened?

I live in California and just made a purchase today. I was not charged sales tax.

Regardless of where you live, Valve uses your billing address to determine if you pay sales tax or not. Does your bank/payment account not have a California address associated with it?

It could also be a tax the city / county they live in has added so they will have to investigate it on their end.

[Spawn of Totoro]

Originally posted by Chompman:

It could also be a tax the city / county they live in has added so they will have to investigate it on their end.

I have not heard of a city or county collecting sales tax with digital purchases, with out the entire state doing so.

[鬼 (oni)]

Originally posted by Spawn of Totoro:

Originally posted by 鬼 (oni):

Hi, I live in California and beginning around March 2022 Steam started taxing me on games. Before there were no digital sales tax. What happened?

I live in California and just made a purchase today. I was not charged sales tax.

Regardless of where you live, Valve uses your billing address to determine if you pay sales tax or not. Does your bank/payment account not have a California address associated with it?

I just tested, I started using paypal to pay for stuff which adds tax. but if i use my card directly I do not get taxed right away

[Spawn of Totoro]

Originally posted by 鬼 (oni):

I just tested, I started using paypal to pay for stuff which adds tax. but if i use my card directly I do not get taxed right away

You are taxed on purchase, if you are taxed at all, so I don't know where "I do not get taxed right away" is coming from. It will show when you are checking out.

I suggest checking your information with Paypal and what you have on file with Steam to ensure the correct billing address is stated. If the billing address is in another state, then that state may charge sales tax.

[Thermal Lance]

I pay taxes too. So what?

Ultimately, it’s good for your country that digital purchases are taxed. Well, assuming they ain’t burning all of it for partisan bollocks.

[Spawn of Totoro]

Originally posted by Thermal Lance:

I pay taxes too. So what?

Ultimately, it’s good for your country that digital purchases are taxed. Well, assuming they ain’t burning all of it for partisan bollocks.

Agreed. But we need to find out if the OP is supposed to be paying the taxes or not on Steam Purchases.

After some searching, I can only find statements that CA exempts taxes on digital purchases at this time. It is a state wide policy. I can't fine any instances of cities or counties having (or being able to) required taxes on such purchases.

Hence why I think the OP's billing address, or other information, may be incorrect. If they moved and never changed their billing address with their bank (has been know to happen) then Steam may still think they are in the other state, since Steam does not go by your IP address to determine if you are taxed.

[fluxtorrent]

looks like its a paypal specific thing
https://www.taxjar.com/sales-tax/paypal-sales-tax

[鬼 (oni)]

Originally posted by Spawn of Totoro:

Originally posted by Thermal Lance:

I pay taxes too. So what?

Ultimately, it’s good for your country that digital purchases are taxed. Well, assuming they ain’t burning all of it for partisan bollocks.

Agreed. But we need to find out if the OP is supposed to be paying the taxes or not on Steam Purchases.

After some searching, I can only find statements that CA exempts taxes on digital purchases at this time. It is a state wide policy. I can't fine any instances of cities or counties having (or being able to) required taxes on such purchases.

Hence why I think the OP's billing address, or other information, may be incorrect. If they moved and never changed their billing address with their bank (has been know to happen) then Steam may still think they are in the other state, since Steam does not go by your IP address to determine if you are taxed.

You were right, my paypal address was set to outside of california (prior address) even though my cards billing address is california.

[muckymucks]

I've been dreading this day. Fortunately, I buy most of my Steam games from third-party sellers, so no taxes.