Legal Resources

Tax Reform Frequently Asked Questions

What about an annual membership fee that covers digital books, movie downloads and free shipping?

  • Unless the price of each component is separately stated (whether taxable or exempt), the entire charge is taxable.  For example, for $60 a consumer receives the right to download books and movies and receive free shipping on purchases of tangible personal property.  Unless the amount charged for the right to free shipping is separately stated, the entire $60 is subject to sales tax.