American tax

Can somebody tell me what percentage of the land tiers are actually american taxes and what they are ?

Im just curious as to whether we Europeans now charged vat need to be paying american tax too ?

Currently .. none. Sales tax is only charged to California residents.

And is that included in the tier or on top of it ?

They charge tax differently over there. It's _not_ included in the overall price. The only tax you're paying as a European is your VAT.

If you are in California - you would be charged sales tax on top of your tier.

Sales Tax is never.

Seriously NEVER included in the advertised price.

So how does it work ? do lindens charge you twice or do you have to declare it to your local taxman ?

why would Europeans have to pay American based taxes?

There is a misconception among some Europeans that they're being taxed twice because they're so accustomed to VAT being included in the advertised price. Some think Linden's advertised prices include American sales taxes, which of course they don't.

When a price is quoted here in California it is known that 7 1/2 % tax will be added on to it. For example, if an item is on the shelf for $1.00, I know when I get to the register I will pay $1.08 after tax. Once that is done it's not my concern. It is the stores (or businesses) responsibility to pay the tax based on their sales.

I have no clue how Linden does it, but if I buy something for $10. That amount is on a subtotal line, then the tax calculation, then the total charged. Or that is how most retail sites do it. If I am not charged sales tax by the company, I am supposed to declare it on my state taxes, but in my years of preparing tax returns, NO ONE has ever declared out of state purchases on which they did not pay sales tax. And it is a question we ask when we are filling out the paper work.

so does that mean the californian sales tax is included in the tier prices or not ? Sorry Im confused now.

No, because only Californians have to pay the tax. It's LL's responsibility to keep the bookkeeping and provide it when audited.

Works like this.

If your tier was advertised as $100 dollars ..

And you live in California (7.5% sales tax)..

Then your total bill is $107.50.


The same exact way they are charging the VAT at the moment - and leading to the ire of many European customers.

so okay then where does it tell you how much sales tax you have to pay if youre a californian ??

So the VAT website integration perhaps wasn't as huge a job as people seem to think then?

They just had to apply the Californian model to customers registered in Europe .. and apply different percentages.

I imagine on the final bill.

Whenever you buy anything in the US with sales tax thats how it works.

You get a subtotal which is the before tax amount

then plus tax - and it lists the tax

then it adds the two up and the final total is charged you.

If someone lives in California they know what their sales tax % is.

California does not charge sales tax on internet services such as Second Life. There is no U.S. or calif. tax on Second Life.

California only charges Sales on goods, not Services.

I heard from Californians differently. California residents have to pay Sales tax. They dont charge any other states' residents sales tax, which makes sense since theres provisions that make it not applicable.

Maybe I've been misinformed. Someone from California who owns land will obviously know.

They don't charge california tax to californians. I am from Calif. Second Life is a service not a good.

Wwell in that case no one except those int he EU are paying any taxes on Second Life.

Which in that case makes sense since only their governments are TAXING Second Life.

I wonder how long it will be before the IRS or whatever you have in sunny CA will close up that little loophole

Confirmed. I've never been charged ANY tax for ANY charges in SL.

It would be up to the state legislature.

Looks like I need to move to CA then ..I wonder if I can find myself one of those wonderful CA girls who skates around all day in hot pants and t and not much else....