I think to legally get around this you actually should only purchase a game when in these states that don't have sales tax as of yet. I'm just saying if you live close to a bordering state then cross over and change your zip. I mean it makes sense right. If I purchase a item in another state then I pay their sales tax. Just some thoughts. This is screwed up in the sense that all of us in USA should be the same across the board. This is a government issue and surprised they don't step in and force it into law!

It's called "The government is broke and needs more money." Simple as that. Unfair, yes, but unfortunately for large portions of the U.S., it's the way it is.

I don't have a 3DS, so I haven't experienced the tax issue. If I understand correctly, some of you were taxed when you bought the card at the store, and then taxed again when you bought some games in the eshop. I don't think this is a "government needs more money" issue. It sounds more like a "Nintendo screwed up" issue to me.

Retailers charged a tax when they sold Wii points. When we redeemed the points to buy Wiiware games, there was no tax. That's simple enough - the sales tax was already paid when the points were purchased. It sounds like Nintendo moved from a "points" system to a "prepaid card" system, but maybe didn't let the retailers know. So, the retailers continue charging tax, like they did on the points card. Nintendo charges sales tax on the game purchase, because, to them, all you bought at the store was a prepaid card.

The fact that people are saying that you can use a credit card in the eshop to buy credit without being charged a tax confirms to me that Nintendo intended for the eshop card to be a "prepaid card," like a gift card. They most likely intended for the tax to be charged when you actually spent the eshop credit.

Has anyone contacted Nintendo to find out how this is supposed to work?

@chiwii
Most retailers didn't tax points cards. At least not here in Illinois which is one of the most expensive states to live in.

No, I also live in Illinois and I've gotten taxed before. Then again, I did buy the eShop card in Cook County...

Were you taxed on just that eShop card or did you also get taxed on Wii/DSi point cards? I just bought mine at gamestop and was never taxed.

no taxes here.

@Retro - I've been taxed on Nintendo Points from a Gamestop in Will County (where I live), but I can't remember an occasion where I've been taxed on Nintendo Points in Cook County, so it's possible I could've been taxed there, but maybe not. I was also taxed on the eShop card I purchased about a week ago in Cook.

Guys, it's simple! Let me break it down. If you live in a region with tax, just enter 90210 as your address and for a $4.99 game you won't be charged $5.36 or whatever you will be charged $4.99! I live in Springfield Ohio and pay tax on a 20 dollar card so this is how I got out of paying tax again! I saved about a dollar and was able to buy all virtual console games with $20! Hope this helps. Wait... I guess another people have said stuff like this oh well............

Yep, always a good idea to publically state your intention to defraud taxing authorities.

Get over it people. Taxes are a fact of life, especially in the US. Pay your taxes; they pay for the things the government provides (and most people take for granted). And as i said before, if you REALLY have a problem with it, contact your appropriate politicians and voice your concerns over the status of internet-transaction-related taxation.

Sigh.
/me gets off high horse

I agree with you. Just pay them. If you don't want to waste all your money don't buy every game or wait until you have more money.Just get the games you desperately want.

It really all depends on your locality if you are taxed on cards, game purchases, or both. If you're getting taxed twice, I would write your local state representative and/or county/city councilman. Constituent services are a part of elected officials job, so you should be able to get a description of the local tax law. If you shouldn't get double-taxed you will know where the problem lies - retail stores, which you can contact or shop around, or Nintendo, who you should forward your corresponence to, if they are in the wrong. Another option is to contact your state department of taxation. If you can show you are being double taxed, you may be able to file for a refund.

While you are unlikely to get caught, claiming a different zip code for the purpose of evading tax is illegal. States are in budget crunches, so they really want to crack down on online purchases. Digital game distribution isn't a big fish, but companies like Amazon are unfairly competing with brick and mortar shops by not charging tax, so local businesses and governments are losing out on significant revenue.

Fun fact: you are technically supposed to claim purchases online over a certain amount of money on your tax return and pay "use" tax (equivalent of sales tax) in most states. Most people don't, leaving states to force companies to try and implement taxes that are different in every state (or even every county in some states), so it's not too surprising to see messes like this.

tl;dr Contact your state/county representative, if you are being double taxed. If the retailer or Nintendo is not supposed to charge you tax, contact them. They don't want to charge tax if they don't have to - no tax=more sales. Tax fraud is illegal, and as business moves online, states need to move online too, so that they can continue to pay teachers and firefighters.

I wouldn't mind the taxes, except that it taxes you on individual games, so I have have 1.88$ in my account and no way to use it unless I add more money.

@Peterifico
So add more money. Or don't buy more games. This isn't rocket science.
The leftover-money "problem" can be annoying, but that's the store business model that has basically become standard, be it Ninty, MS or Sony. You're left with unusable amounts, which means you eventually add more money/points to your account, and thus they get more of your gaming dollars.

But why not follow Apple's model and not have to add money at all? They should quit ripping of the consumers by making them pay extra to use their money. Or just tax you on the 5$ originally. They did that with Nintendo points, why not do that on the Eshop?
EDIT: And just because it's a common business model doesn't make it alright.

@Peterifico
I agree, i'd rather it just be a "pay for what you buy" model, instead of the "add money/points to your account" model. But unfortunately there is no "right" when it comes to business, just "what's most profitable".

I live in Illinois, and I've been charged sales tax on Wii point cards.

@Token_Girl - Which localities require businesses to collect a sales tax on the purchase of gift cards? I'm not aware of any, but I'm not familiar with the tax laws of all states.

If your getting charged tax when you buy the card that sux.I'm in the UK and have only added credit using a debit card.Not surprised about the tax on the games though, we get taxed on bloody everything over here!! What I do hate is the price of the games, £5.40 for Zelda LA!! (and I still bought it, damn you Nintendo!) I mean sure that game is worth it but how many others are? I mean I can get the cartridges cheaper FFS. £10.40 for Shantae. Pffff ridonculus.Nintendo really need to take a look at XBLA ,PSN or the App store to get a reality check.Oh and NIntendo now have £4.60 of my cash that I really didn't want to spend. Arrggghh! _{the 3DS still rocks my socks tho}

I have no idea, and since sales tax is determined locally, there's no way anyone could know off the top of their head. Some people on the forum complained about getting taxed buying prepaid cards, so that's why I suggested that if they were getting taxed twice they contact their district representative for the state house or their their city or county council rep, since they would know the laws for their town. This way, they can find out if retailers are the ones who shouldn't be charging tax or if Nintendo shouldn't be charging tax (or if the law hasn't evolved properly to handle this situation, and they are just screwed for the time being).

Damn government always trying to find ways to waste our hard earned money.