Taxation of Miles
May 14, 2001 | 1:09 am
#31
Join Date: May 2000
Location: Lincoln, NE (OMA or LNK)
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Originally posted by rmccamy:
Also keep in mind that Congress is right now proposing a five-cent tax on each email sent from the US. In most versions of this legislation, bulletin board posts will be legally considered emails. I know this is true, because one of my cousin's friends knows somebody who has a roommate who works on Capitol Hill.
He also said that the email tax will probably pass right through Congress along with the Frequent Flyer Income Tax that is also in its final stages of revision. Since 120000 miles = a $12000 int'l FC ticket, Congress is setting the value at a dime per mile.
Also keep in mind that Congress is right now proposing a five-cent tax on each email sent from the US. In most versions of this legislation, bulletin board posts will be legally considered emails. I know this is true, because one of my cousin's friends knows somebody who has a roommate who works on Capitol Hill.
He also said that the email tax will probably pass right through Congress along with the Frequent Flyer Income Tax that is also in its final stages of revision. Since 120000 miles = a $12000 int'l FC ticket, Congress is setting the value at a dime per mile.
But seriously, FF miles accrued or redeemed as a direct result of the puchase from the entity providing the service are not taxable as they are a portion of the purchase contract,therefore included in the purchase price. However, any benefit derived by a third-party transaction, (i.e. Capital One or other type of mileage program separate from that of the vendor, or one for which no consideration was offered read 'price was paid' such as Greenpoints, Milespree, etal.) is taxable at the time a service is provided (read 'ticket is issued') as no direct relationship between the purchaser and service provider exists. The service is being purchased by the third-party provider and not the person receiving the benefit.
I am not going to pull out my Financial Accounting Standards Bulletins, but this has been covered in a FASB Statement within the past couple of years.
May 14, 2001 | 7:47 am
#32
Join Date: Jul 2000
Posts: 470
Re: Five cent tax on e-mails. I know, how completely moronic. If I hear this one more time from a purported "expert" who has the inside track, I think that I will throttle the poor moron on the spot.
-And a nail left in a can of Coke will dissolve overnight! Hot water freezes faster than cold water! There was this guy, and, and, he was attacked by an albino alligator from the NYC sewer. I swear! My uncle's neighbors' dog was once pet by this lady who knew the guy that was attacked!
-And a nail left in a can of Coke will dissolve overnight! Hot water freezes faster than cold water! There was this guy, and, and, he was attacked by an albino alligator from the NYC sewer. I swear! My uncle's neighbors' dog was once pet by this lady who knew the guy that was attacked!
May 14, 2001 | 9:21 am
#33
Join Date: Feb 2000
Location: ny,ny
Posts: 396
If the coupon is issued by the store where you are buying the product, your sales tax is computed on the net price. Otherwise you pay sales tax on the pre coupon price!
yep.. this makes some sense.. think about it this way.. if the store offers you a coupon, the price is actually lowered, i.e. they receive only $0.75 instead of the full $1.00 they have marked the item as selling for.. so you are only charged SALES TAX on the $0.75 because this is what is being paid in total for the good.. on theother hand, if the manufacturer is giving you a coupon for the same $0.25 off the product, the store is still being paid $1.00 for the product (actually closer to $1.08 with processing fees figured in) it's just split between you and the manufacturer.. since making the manufacturer pay the sales tax would impose a ridiculously high overhead on their processing cost of the coupons, i.e. they would have to have a database of sales tax rates in each county or division of a state and figure it out based on that leading to a reduction in coupons, they simply have you pay the sales tax the the full purchase price of the product as this is what the storw will forward on to the taxing authority..
yep.. this makes some sense.. think about it this way.. if the store offers you a coupon, the price is actually lowered, i.e. they receive only $0.75 instead of the full $1.00 they have marked the item as selling for.. so you are only charged SALES TAX on the $0.75 because this is what is being paid in total for the good.. on theother hand, if the manufacturer is giving you a coupon for the same $0.25 off the product, the store is still being paid $1.00 for the product (actually closer to $1.08 with processing fees figured in) it's just split between you and the manufacturer.. since making the manufacturer pay the sales tax would impose a ridiculously high overhead on their processing cost of the coupons, i.e. they would have to have a database of sales tax rates in each county or division of a state and figure it out based on that leading to a reduction in coupons, they simply have you pay the sales tax the the full purchase price of the product as this is what the storw will forward on to the taxing authority..
May 14, 2001 | 11:52 pm
#34
Join Date: Sep 2000
Location: MCI. AA Plat, UA PrmEx., Mrrtt Gold, Hz Pres.Circle, HHonors Gold
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You guys are WAY too serious. 
The email tax legend is, of course, the Granddaddy of all Internet-borne folklore. Variants of "Bill 602P" have been around at least as long as the Usenet (anyone remember alt.folklore.urban and alt.folklore.college?).
I'm still LMAO at Hillary and Lazio providing such serious responses to it!
The email tax legend is, of course, the Granddaddy of all Internet-borne folklore. Variants of "Bill 602P" have been around at least as long as the Usenet (anyone remember alt.folklore.urban and alt.folklore.college?).
I'm still LMAO at Hillary and Lazio providing such serious responses to it!