[Hidden-tech] Massachusetts sales tax policy

[Marcia Yudkin]

Hi everyone,

I received a notice from an online company I do business with saying that they are going to start charging sales tax on their subscription fees.

This seems totally wrong to me for two reasons.

1)They announced it as a blanket policy, although each state has different tax policies and some states have no sales tax at all. (eg New Hampshire)

2)In Massachusetts, from what I know, sales tax is not levied on services, only on products. That means that a subscription fee is not subject to state sales tax. Isn't that correct?

I want to make sure I'm on solid ground before I write back to them to object. And if they do go ahead and charge sales tax improperly (the subscription fee is $500/year so this would be $25+), how do you suggest I deal with that? Object to the credit card company if they won't budge?

Thanks,
Marcia Yudkin
www.yudkin.com  
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