NETFLIX users

[KimRaye]

I received this in an email:

We are writing to inform you that as of May 1st, 2003, Netflix will be required
by Chicago Municipal Code to collect a 6% Lease Transaction Tax on membership
fees for all area residents. This tax will be collected and remitted monthly for
all billing cycles renewing on or after May 1st, 2003. Thank you for your
continued patronage.

Sincerely,

Netflix Accounting




Now, I understand this doesn't affect ALL Netflix users but, do you have this in place already or, have you received anything similar lately?

What's up with my Fine City? Gotta get every dime they can, I guess.

 

[nativetxn]

What is NETFLIX?

 

[KimRaye]

Kath, it's an online, by mail, DVD rental arrangement. You get however many movies you want, rented to you at one time, for a monthly fee. In my case, I scaled down to 2 movies at a time for $13.95 (I think). So, if I get the movies, watch them one weekend and, send them back right away, I could conceivably get 2 movies every weekend for $13.95/mo. Many others here have larger movie packages tho.

 

[nativetxn]

Thanks KimRaye, I really didn't know what it was. So, only the city is collecting taxes on this so far? Hmmm, I don't imagine the state and feds are far behind either. How aggravating.

Katholyn

 

[KimRaye]

That's what I'm wondering myself Kath. Has any other City, State, Fed tax been added to anyone else's 'subscription'? Is CHICAGO the only one?!

I guess we have to LEAD the industry in some respect!



And btw, I KNOW this is only 84 cents a month for me but, if others start being charged......I'm just warning and, asking, at the same time.

INFO!

 

[Chattyaholic]

I've been a member of Netflix for almost 2 months now (LOVE IT!!)
and have not received an e-mail of that nature yet. They need to be careful, if they start "adding on" a bunch of different "taxes" people will cancel their memberships and just go back to going to the video store or using pay-per-view. So far I think the program is GREAT and have not been disappointed with it. I'm on the "3 movies out" program and it's perfect for us. The first month we used the program, I added up all the movies we'd seen and divided it by the cost and came up with 85 cents per movie!! And I love "no late fees" too!!!

 

[CarolA]

I am willing to bet that NetFlix has some sort of corporate presence in Chicago.

I used to be a sales and use tax auditor and that is the current requirement. In theroy all purchases are subject to sales and use tax. (I don't really recall about leases, I think it depends on your city/state). What your good law abiding citizen is suppose to do is when he orders over the internet or from out of state is go volunteer to pay the tax. I can assure you that was PRETTY rare! We did go to NC, and get the purchase records of people buying furniture and send them bills however!

 

[MerryPoppins]

Shhhh! Don't say any of that too loud. My city will get the idea and add to my bill, too.

No email or added tax here. Lucky you!

 

[Dan Murphy]

I bet 'his honor' needed the money to hack those Meigs runways, Kim.


PS: I have no idea.

 

[DaveH]

We have Netflix and they collect state sales tax. When I signed up the info said that all the legal cases regarding taxes for the internet mail order has gone in the government's favor. They said they collect the taxes that are assessed for where you live. So we pay the VA sales tax on our monthly bill.