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Date: Wed, 23 Aug 2000 09:31:55 -0400
From: Douglas Duchin (Baruch College) <dduchin_at_newton.baruch.cuny.edu>
Subject: ACQNET: RE: Taxes on online services
The following site has a fairly good summary of what's going on with taxes on
Internet purchases:
http://usgovinfo.about.com/newsissues/usgovinfo/library/news/aa051000b.htm?
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Date: Wed, 23 Aug 2000 15:21:36 -0400
From: James Tobin (Univ. of WI-Milwaukee) <RJT_at_gml.lib.uwm.edu>
Subject: ACQNET: RE: Taxes on online services
Surely as a public institution you are tax exempt.
R. James Tobin
Collection Development Manager
Golda Meir Library
University of Wisconsin-Milwaukee
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Date: Tues, 29 Aug 2000
From: Eleanor Cook (Appalachian State U.) <cookei_at_appstate.edu>
Subject: ACQNET: RE: Taxes on online services
Both the responses above and others posted earlier may be confusing the issue,
so I'd like to take the opportunity to weigh in. The US government web site
Doug Duchin points us to is relevant, but really addresses the controversy of
taxing purchases made *over* the Internet. Those purchases, that is, that are
made by consumers. More on this below.
Many of us in state institutions operate under exceptions to the rule. In some
cases, as James Tobin suggests, we are tax-exempt. But not necessarily!
In North Carolina, we operate with an arcane piece of legislation that holds us
tax-exempt when we are purchasing periodicals and newspapers. Our subscriptions
are tax-exempt, but none of our book and standing order purchases are. On those
we pay a 6% sales tax. That in itself was pretty confusing when all we were
accustom to dealing with was print and microform. In fact, some UNC institutions
just in the last few years were issued huge credits after years of disputing
this with their local financial officers.
So, now what do we do with purchases we make that are for online databases?
(I think this was the gist of the original question).
Our rule of thumb would be this: if the product is a "one-time" purchase, then
it would be taxed, just like books and standing orders. If we consider it a
continuing commitment, that is, a "subscription" then it would be tax-exempt.
This is how our financial people are interpreting it currently.
As for consumer or institutional purchases that occur *via* the Internet (such
as buying books from Amazon, etc.), that is not really the point here. For us,
it is the type of material being purchased, not the method. Our Controller's
Office applies state tax to our non-exempt purchases even if the vendor or
publisher does not - it goes to a special fund that is paid directly to the
state.
However, there are many issues regarding using the Internet for interstate
commerce that have yet to be resolved and we could be severely impacted by
legislation, either at the state or national level. We need to follow the
developments, both as consumers and as acquisitions librarians.
The State of NC, like others, are trying to get taxpayers to 'fess up to
their Internet purchases and pay tax on them, but so far, there are few
takers.
And the bottom line - make no assumptions about what your state is doing.
Seek an interpretation and lobby for changes that are favorable.
Eleanor Cook
*********************************************************************
Eleanor I. Cook 828-262-2786 (wrk)
Interim Coordinator, Materials Processing 828-262-2773 (fax)
& Serials Specialist
Belk Library, ASU Box 32026
Appalachian State University
Boone, NC 28608-2026 cookei_at_appstate.edu
*********************************************************************
Received on Tue Aug 29 2000 - 20:23:03 EDT