Merchant Archive
Thread: Sales Tax in Player Cities
My understanding is that you put an item up for sale at 100. The price the user sees is 105 (assuming a 5% sales tax). When they purchase the item you get 100. The 5 goes to the city treasury.
Like Doc said. You will get an email saying that such and such sold for 105 credits, but you only get 100 of it, the city gets the tax.
- Sales tax does not apply to tips
-Sales tax DOES apply to vendor offers. So the transaction of someone offering something to your vendor will be taxed.
I have looked/searched/advanced searched for this and can't seem to find an answer.
How does the Game charge sales taxes?
Doesthe price + tax show up on vendor?
Does the price show up and a tax "box" pop up ala bank transfers?
Does the tax come out of my bank when a sale is made?
Thanks
our city costs about 790k a week in maint fees.
we have a 5% sales tax and and a 100 Credit shuttle surcharge that just covers this cost.
ok now..
Lets say you go to a store and spend $100. there is a sales tax of 5%
who pays the tax's. you or the store.
you would pay $105 at the register.
now lets say that custermer goes to that store and spends %100 every month.. he spends a total of $60 a year in tax's.
now lets say the store has 1000 custermer's a month who each spend $100 that is $1,200,000 per year of income. and he had to pay the taxes which would be $60,000.
Is it fair to the custermer to pay the tax. In Real Life it is as the custermer is the one who will be using the stuff he bought and the tax's pay for public and city services.
Is It fair to make the city's merchant's pay all tax's out of hand so that instead of passing the cost around to many, such as the hundreds or thousands who shop in city's
If the taxes in RL were passed onto the stores that sold the products it would result in higher prices so that they could recoup the loss.
just my 2 cents worth
Well merchants set the price at what they want to get, taxes are added, I think it's fine this way.
What I would like however is, in the mail, to get the price that we put the item at when it gets sold, not the price with taxes. It's a real headache sometimes when you need to pay back the person you manage the vendor for.
I still see this as the people buying my stuff paying the taxes, not me, even if a part of the price I set goes to the city treasury. I just need to set the prices to a nice round figure a bit higher than what I want to have for myself..
DocSavag wrote:
No one lowers their prices to make the taxes come out to an even number.
Depends where you live Doc, some governments require that you disclose GST and sales taxin different ways. I've seen the following:
- Item Price
- GST or sales tax
- Total Price (inc tax)
And:
- Total Price (inc tax)
And:
- Item Price
- GST or sales tax
And:
- Total Price (inc tax)
- GST or sales tax
In the first case its broken down for you, you can see that the provider is selling for and what the government tax is. In the second instance you can't see anything just the end result, and in the third they show you the two components but don't add it together for you. In thefourth case, you have to work out what the real cost of the item is by removing the tax from the total price.
In cases where the GST is hidden or where they can 'put it seperate', the provider actually does "fiddle the price" to makethe total pricecome out at "Price - 1" the ubiquitous $49,990 or $19.95 or whatever.
Doesn't really matter in our game world, we all naturally like round numbers so we can easily calculate cpu, but in the real world people are dumb and think they are making a huge saving between 50,000 and 49,990. Price juggling to make the number look appealing, does happen.
Yes I agree, in France it's the total price that is displayed, and it still uses the 399.99 thing a lot.
In this case though, I think that it's easier for merchants to type what they want to get from an item, as they would not be able to know exactly what they will get in the end if the price they set included taxes.