States Trying to Tax DLC

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29 Jan 2009, 10:38 AM
Yoshi

States Trying to Tax DLC

Quote:

Originally Posted by IGN

State legislators in North Carolina are proposing a state sales tax on all digital purchases in an effort to boost the Tar Heel State's balance sheet, according to a report today by the Entertainment Consumers Association's blog GamePolitics.com.

The post cites a report by a local TV news station, News 14, which spoke to North Carolina State Rep. Paul Luebke (D-Durham) about the proposed tax.

"We used to think of everything in terms of being tangible. Nobody thought of how you could possibly download anything," Luebke explained to the station. "So if you buy a book in a bookstore, you're going to have to pay sales tax on it. If you're downloading a book from a book seller, you should have to pay sales tax on that as well."

The proposal is still in its early stages, but researchers estimate that taxing music, video games, movies, books and software downloads in the state could generate about $12 million during the next fiscal year. Many in the state would likely welcome the extra cash, but not everyone is dusting off their rubber stamps just yet.

"We would be concerned about any kind of new taxes in this economy," Brooks Raiford, president and CEO of the North Carolina Technology Association, told the station. "The consumer is already very highly taxed, the economy is stretched. All we're asking is that those considerations be taken carefully and that the industry be asked for their input as the legislation is finalized."

The NCTA represents, among other game-related companies, Cary, N.C.-based Epic Games, which picked up the organization's 2008 Top Industry Driven Technology Company of the Year Award.

A similar proposal was floated in New York state last year by Democratic Gov. David Paterson, who sought to tack a tax onto digital downloads as part of a larger $121 billion budget plan. In the budget proposal, it's described not as an additional tax but as an effort to close the "digital property taxation loophole."

The measure is still under consideration. Such taxes are already standard in Canada and the United Kingdom.

Link

So this is what living in a backwards ass blue state feels like. I'm moving ASAP. Texas seems safe.

If this were to pass, I'd buy point cards from Amazon and then use them instead of a credit card to continue to dodge this bullshit.

edit: Keep in mind this is the same state that still refuses to tax tobacco. Clearly DLC is a much greater boon and has much worse side effects in terms of health care costs. :rolleyes:
29 Jan 2009, 10:54 AM
Chux

It's time for another

http://2.bp.blogspot.com/_u2_daiFa2p...Bad%2BIdea.jpg
29 Jan 2009, 10:55 AM
WhatsHisFace

This will heavily encourage piracy.
29 Jan 2009, 11:12 AM
kingoffighters

Amazon had to charge sales tax in NY now, and it really sucks. But it didn't encourage me to go steal or rob, so the noob above is wrong.
29 Jan 2009, 11:19 AM
Bacon McShig

Unfortunately, it's going to have to happen eventually. Online sales are becoming too big a piece of the retail pie to be regarded as a fringe element.
29 Jan 2009, 11:29 AM
K3V

I had a piece of your mother's retail pie.
29 Jan 2009, 11:40 AM
Bacon McShig

2 K3Vs 1 cup?
29 Jan 2009, 11:49 AM
cka

Quote:

Originally Posted by WhatsHisFace

This will heavily encourage piracy.

except it's kind of difficult to pirate dlc, since it ties into your console/online user account

and everyone laughed when I said dlc was the start of the downfall of gaming!
29 Jan 2009, 11:57 AM
Glass Joe

There is a little blurb about New York doing this in the newest issue of Game Informer.
29 Jan 2009, 12:42 PM
epmode

Quote:

Originally Posted by cka

and everyone laughed when I said dlc was the start of the downfall of gaming!

I liked DLC when it was called a "patch". And expansion packs really were worth the $20.

Now everything's all fucky.

I blame M$ and $ony and $atoru Iwata$$$.
29 Jan 2009, 04:03 PM
Changeling

Play games on PC, Foos !
29 Jan 2009, 04:36 PM
WhatsHisFace

Quote:

Originally Posted by Changeling

Play games on PC, Foos !

This tax would affect Steam too. It's a tax on all online transactions, not just game DLC.
29 Jan 2009, 04:42 PM
Pineapple

So just got download every possible thing now, store it away, and when this comes to pass, never download anything again.
29 Jan 2009, 04:42 PM
SpoDaddy

Quote:

Originally Posted by cka

and everyone laughed when I said dlc was the start of the downfall of gaming!

I didn't.
29 Jan 2009, 05:08 PM
Changeling

Quote:

Originally Posted by WhatsHisFace

This tax would affect Steam too. It's a tax on all online transactions, not just game DLC.

PC "DLC" used to be free (Unreal 2004 bonuses and such.) I'm from the old school of putting stuff out for free as goodwill towards your paying customers. I like expansion packs waaaaaay more than DLC. Game companies are taking things out of games just to release the content as "DLC" later. There are some companies that truly do get it right, but they are few and far between. As far as tax for stuff we download online, it was only a matter of time.
29 Jan 2009, 05:08 PM
Razor Ramon

This would make you move out of North Carolina? You have low expectations in life.
29 Jan 2009, 05:14 PM
Josh

Dude. It's Yoshi. He's a weirdo.
29 Jan 2009, 06:55 PM
gameoverDude

Quote:

Originally Posted by Bacon McShig

Unfortunately, it's going to have to happen eventually. Online sales are becoming too big a piece of the retail pie to be regarded as a fringe element.

The sales tax is an outdated concept, and no one ever thought of DLC or mail order at that time. Some states already charge NO sales tax, but instead maybe 2-3% more personal income tax (i.e. Montana). I think a slight PIT increase in lieu of sales tax is the better option.

It sucks when game companies slash content from a $60 game to release later as DLC. A $60 game very well can become a $75 one.
29 Jan 2009, 09:57 PM
WhatsHisFace

Quote:

Originally Posted by gameoverDude

The sales tax is an outdated concept, and no one ever thought of DLC or mail order at that time. Some states already charge NO sales tax, but instead maybe 2-3% more personal income tax (i.e. Montana). I think a slight PIT increase in lieu of sales tax is the better option.

It sucks when game companies slash content from a $60 game to release later as DLC. A $60 game very well can become a $75 one.

And then there are states like New Jersey, who increase sales tax whenever they want. :cry:
29 Jan 2009, 10:06 PM
RoleTroll

Quote:

Originally Posted by Yoshi

So this is what living in a backwards ass blue state feels like.

A momentary blip. North Carolina, like the whole country, will be going deep red in 2010 and beyond.
29 Jan 2009, 10:51 PM
Daitokuji

If I remember correctly Nintendo already does this on the Wii. Everything I've downloaded from them was taxed.
30 Jan 2009, 04:42 PM
ssbomberman

My problem with DLC is when a game is released half-assed with the idea that they can just patch it later... they don't take the QA piece as seriously anymore. Or when content is on the disc and you're just paying to unlock it... I'm all about quality expansions or balance tweaks as long as they're done right... but I agree... this basically means that many console games we buy are incomplete...
30 Jan 2009, 06:37 PM
GohanX

Quote:

Originally Posted by Razor Ramon

This would make you move out of North Carolina? You have low expectations in life.

Taxes here in NC have gotten ridiculous. I estimate that my NC state taxes have quadrupled (at least) in the past few years, while federal and city taxes have only had a modest increase. If I didn't actually like it here, I'd probably hit the road myself.
31 Jan 2009, 12:13 AM
Yoshi

Quote:

Originally Posted by Razor Ramon

This would make you move out of North Carolina? You have low expectations in life.

I'm already moving. I'm not living in a blue state. This would just accelerate or further motivate it.
01 Feb 2009, 10:41 PM
SpoDaddy

Quote:

Originally Posted by RoleTroll

A momentary blip. North Carolina, like the whole country, will be going deep red in 2010 and beyond.

Convince me of that. Please.
02 Feb 2009, 01:47 PM
Space Pirate Roberts

LOL, only if a new, viable conservative party emerges. The Republican name has been rendered toxic for at least a generation.
02 Feb 2009, 06:31 PM
Nomi

Honestly I don't see the big fuss about DLC being taxed (it's a good, and most goods are taxed now) until I got to this:

Quote:

Originally Posted by Yoshi

edit: Keep in mind this is the same state that still refuses to tax tobacco. Clearly DLC is a much greater boon and has much worse side effects in terms of health care costs. :rolleyes:

What the fuck? If they care about their budget, tax the fuck out of tobacco! That seems ridiculous.

edit: also I hate companies offering DLC that should have been included in the first place/should be called a patch, but that's not the real issue here.
02 Feb 2009, 08:27 PM
Vasteel

Quote:

Originally Posted by Nomi

What the fuck? If they care about their budget, tax the fuck out of tobacco! That seems ridiculous.

Tobacco is the big cash crop here, so the companies have a shit-ton of weight to throw around in lobbying. Especially with the banks being under the gun, the state ain't gonna do dick to antagonize them, period.

Although to clarify, tobacco products are taxed, I believe, just at a much lower rate than the other states. It's a flat 30 cents per purchase, I think.