Community Chat

[bikerbabe]

I believe whether or not a membership is taxable depends on state law. In California, it is because the membership relates to the anticipated sale of tangible property.

[chickenbutt]

I think some folks might be confused about sales tax.    What is and is not taxable is determined by each state individually.  So, if your state dictates that services are taxable, then Amazon has no choice but to add sales tax.

That is how simple it is.   Sales tax laws change frequently - by what is deemed taxable and at what amount sales tax is collected.   But any given retailer does not have any choice.  The state laws determine it completely.

In my state, for example, food (human food) is NOT taxable unless it is 'prepared and served'.   This includes any type of restaurant or fast food place.    But at the grocery store, or QVC, or wherever, it is not otherwise taxable.

[JeanLouiseFinch]

Agreed, @chickenbutt.  The food tax works the same in my state too. 

Amazon Prime has a lot to offer for the fee.  It's up to the member to take advantage, though - something I don't always do, but DH does more.  I'm happy to pay the fee and be able to shop from home.

Prime annual

$119/year

Best value

Prime Video

FREE Two-Day shipping

Unlimited music streaming

Unlimited photo storage

Unlimited reading

FREE Same-Day Delivery

[Annabellethecat66]

I have belonged to Prime for about 1 year or more now.  I love it!

I only order things where I can use the Prime shipping, etc.

I buy quite a few things through Amazon Prime.  Things like birthday gifts, bird seed, all kinds of cat toys and some cat food.  OMG!  I can't even list all of the things I've bought by saving money (shipping) primarily from Prime.

Probably 7 months ago I bought some weights through Prime.  Can you imagine how much 3 sets of weights (5, 10 and 15 lbs) would have cost me had I not had free shipping?  That was just one example.

I get the items within usually 3 days, no problem.  For me, it's the only way to go.

I also watch movies with it.  There isn't a Whole Foods near me or else I would use it there too.

[shoesnbags]

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@KingstonsMom wrote:

@tansy

See post #5 above.  You need to download the Whole Foods app on your phone.

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@tansy

You can also just give your phone number to the cashier, which is what I do. No fumbling in my purse for my phone. You do have to check to make sure that you have a phone number listed with your Amazon Prime information.  Go to Amazon and check your profile to verify.  I just find it easier to say a phone # than to get the phone out.

[tansy]

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@shoesnbags wrote:

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@KingstonsMom wrote:

@tansy

See post #5 above.  You need to download the Whole Foods app on your phone.

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@tansy

You can also just give your phone number to the cashier, which is what I do. No fumbling in my purse for my phone. You do have to check to make sure that you have a phone number listed with your Amazon Prime information.  Go to Amazon and check your profile to verify.  I just find it easier to say a phone # than to get the phone out.

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Thanks for posting that.  Dealing with my cellphone in a situation like that can be a real PITA.  

@shoesnbags

[DiAnne]

Many items on the website ship for free if you order $25 worth.  I don't have Prime and I have never paid for shipping.  Of course it is not 2 days shipping but so far that has never mattered to me.  

[sunshine45]

since we dont know what state you live in, here is a list of states that charge taxes on amazon prime membership. "If any of component products or services would be subject to retail sales tax, then the entire membership fee is a bundled transaction subject to retail sales tax."

Amazon Prime includes multiple benefits such as free two day shipping, free unlimited photo storage, plus exclusive access to movies, music and Kindle books. To determine the taxability of Prime, taxing authorities were requested by Amazon to provide guidance. As a result, Amazon Prime is subject to tax in the following states:

• Alabama
• Arizona
• Arkansas
• California
• Colorado
• District of Columbia
• Florida (Communications Services Tax only)
• Hawaii
• Idaho
• Iowa
• Kentucky
• Michigan
• Mississippi
• Missouri
• Nebraska
• New Jersey
• New Mexico
• New York
• North Carolina
• Ohio
• Pennsylvania
• Puerto Rico
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Washington
• West Virginia
• Wisconsin
• Wyoming

[willdob3]

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@Deanie wrote:

Yes, I am aware of the changes in Internet shopping and tax on goods purchased. However, this is a tax on the membership. Not the goods themselves. And, CS was not a help because they could not answer my question about it. And, am I put out about the discounts for students? I am always put out when I see a disparity whereby one group benefits at the expense of another. It puts me in mind of the bars that charge more for men and women get in free, or hairdressers that charge more for women than men. Or healthcare and cost shifting.

So, I still want to know why there is a tax on a membership? A gym membership? a Cotsco membership? a Sam's club membership? Are there taxes on them also? Just the membership...not the goods purchased.

My Amazon Prime membership is 119 dollars. Used to be 99 when I signed up.  The tax on the 119 brings it to 127.00

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@Deanie

Yes, your state can tax the purchase of the membership. To find out why you’d need to check with your state, not Amazon. The state makes the laws regarding taxes.

[chickenbutt]

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@sunshine45 wrote:

since we dont know what state you live in, here is a list of states that charge taxes on amazon prime membership. "If any of component products or services would be subject to retail sales tax, then the entire membership fee is a bundled transaction subject to retail sales tax."

Amazon Prime includes multiple benefits such as free two day shipping, free unlimited photo storage, plus exclusive access to movies, music and Kindle books. To determine the taxability of Prime, taxing authorities were requested by Amazon to provide guidance. As a result, Amazon Prime is subject to tax in the following states:

• Alabama
• Arizona
• Arkansas
• California
• Colorado
• District of Columbia
• Florida (Communications Services Tax only)
• Hawaii
• Idaho
• Iowa
• Kentucky
• Michigan
• Mississippi
• Missouri
• Nebraska
• New Jersey
• New Mexico
• New York
• North Carolina
• Ohio
• Pennsylvania
• Puerto Rico
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Washington
• West Virginia
• Wisconsin
• Wyoming

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Thanks for that info!  Glad to know my state still doesn't charge sales tax for this.    Mine comes up in January and it's a shock that it will go up by $20.   I really hope they had kept that to a $10 increase at this point, but oh well.     

I imagine that many millions times $20 and that's a seriously crazy amount of money.  Had they raised it by $10 instead - still a ton of money.     But most people will probably stay.   I'm pretty sure I will because I pretty much buy everything there that I don't buy at my grocery store.

I have to buy 30# bags of dog food and have saved a LOT of $ over the years, from when we used to get it at PetSmart.  When we stopped, it was costing $59.99 + sales tax at PetSmart.   I haven't paid anywhere near that much at Amazon, even when the price goes up a little bit every now and then.