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There's gold in them-there hills: South Dakota to tax DLC? photo

In this case, the gold would be your hard-earned cash, and the hills would be your pocketbook.

It looks like maybe South Dakota bureaucrats are looking to get a piece of the online downloadable content cash with HB 1017. Game Politics breaks it down for us:

…a tax at the same rate as that imposed upon sales of tangible personal property in this state upon the gross receipts of all sales, leases, or rentals of any product transferred electronically.

Ugh. Let's hope they're not really looking at taxing DLC. I don't want to pay tax on virtual horse armor that I bought for my not-real horse. That's a bunch of horsesh*t.

As Game Politics points out, other state's lawmakers could easily fall in line with this, each wanting their own piece of the DLC pie.

What do you think? Should the man be able to tax us on downloadable content?  








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Dale North is Destructoid's Editor-In-Chief, a founding editor, and specialist in Japanese gaming. An accomplished musician, Dale was reporting from Japan during the earthquakes of 2011. Luckily, he got the fuck out alive and is home in America now with his wife and beloved corgi, Einstein. Dale is also a co-founder of Destructoid's sister anime site Japanator. Likes Corgis, Sega Saturn, PSP, iPhone, Photographic tools. Meet the rest of the team



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25 comments | showing # 1 to 25
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Corak's Avatar - Comment posted on 01/15/2008 11:05
Corak
I would hope they wouldn't, but as a lot of us know, uncle sam will tax us on anything he can.
free touch's Avatar - Comment posted on 01/15/2008 11:17
free touch
Um...

We already pay tax on it, when we buy the points/cards. At least I do when you get DLC for consoles...

But if they really want to tax second life... be my guest, no one plays it anyway. You live it.
CaptainApocalypse's Avatar - Comment posted on 01/15/2008 11:20
CaptainApocalypse
Taxing intangible things scares me.
Rockvillian's Avatar - Comment posted on 01/15/2008 11:23
Rockvillian
I don't think DLC's content is substantial enough to warrant my money as it is, so adding a tax isn't a resounding YES with me. But you know, people need their money, and I can do nothing to persuade them otherwise besides stop purchasing the content.

Also, I think I want to be a prospector.

MaxVest's Avatar - Comment posted on 01/15/2008 11:25
MaxVest
free touch makes an interesting point. I pay sales tax on Wii points, but not on my PSN direct purchases.

In theory this should only affect the latter. Nintendo is merely exchanging its non-currency points for merchandise, and is not technically "selling" the content.
ME4Twaffle's Avatar - Comment posted on 01/15/2008 11:26
ME4Twaffle
No. This is bullshit. Granted, there's no sales tax in New Hampshire anyways, so I will in no way be affected, but I still think that's a ton of shit... they shouldn't be allowed to tax intangibles...
In fact, they shouldn't be allowed to tax anything. What did they do to earn the money for that product? Nothing. They're basically just stealing from us. If it has anything to do with allowing us to live here: income and housing taxes are enough. We're all registered citizens, and we all live on land that is bought or rented. In this, I am glad I live in New Hampshire. The only state that got things right. :\
Maurice Tan's Avatar - Comment posted on 01/15/2008 11:30
Maurice Tan
Why tax it if Cibola is buried beneath the Black Hills?
MaxVest's Avatar - Comment posted on 01/15/2008 11:36
MaxVest
@ProfPew: Sounds like you've been infected with the Cibola virus.
Mr Lazy's Avatar - Comment posted on 01/15/2008 11:36
Mr Lazy
god i hate politicians
they do a crappy job and cant keep spending in line
so now i have to pay more taxes
I hope somebody challenges this in court
bloodylip's Avatar - Comment posted on 01/15/2008 11:39
bloodylip
Is that virtual horseshit, or actual horseshit?
Unicorn's Avatar - Comment posted on 01/15/2008 11:42
Unicorn
fuck
vexed alex's Avatar - Comment posted on 01/15/2008 11:43
vexed alex
I wonder if Microsoft's point system will be good for something in that it won't count as real money, and therefor be exempt from this law. You know, since it isn't really money we're trading. It's like getting taxed for tickets at a Chuck E. Cheese. Can't do that, son!
SlavedHeart's Avatar - Comment posted on 01/15/2008 12:09
SlavedHeart
Having lived in South Dakota, this makes sense for them... Anyone that's ever lived there (not grown up there, that's a different thing entirely) knows two things...

There is NOTHING going on around you other than some world class tourist attractions (Rushmore and Crazy Horse) and a yearly rally (Sturgis RULES!), which makes for some of the most peaceful experiences you will ever have living in a place.

The taxes are so low already (heck, the tax on a recreational vehicle is cheaper than on a regular car, just to encourage people to recreate) that they need any small chunk they can get, and for how just GOOD it is to live there, they deserve it.

If other states follow along, this is a VERY BAD THING, but if it's only South Dakota, I'm in favor of this... it has been ranked as the least depressing place to live in the whole country for a reason, living in Rapid City, South Dakota was just plain NICE.
rob91883's Avatar - Comment posted on 01/15/2008 12:30
rob91883
I'm already paying enough taxes on shit that I don't need or benefit from, fuck the welfare state, I like my money.
Daniel Husky Lingen's Avatar - Comment posted on 01/15/2008 12:53
Daniel Husky Lingen
I purchased a gamer points card and they taxed that :'(
robestyles's Avatar - Comment posted on 01/15/2008 13:50
robestyles
Last I checked I already do get taxed for this. They tax the points you buy and subscriptions (Live account).
Cheeburga's Avatar - Comment posted on 01/15/2008 13:54
Cheeburga
Glad I don't live there.
Eschatos's Avatar - Comment posted on 01/15/2008 14:07
Eschatos
Are there even any video game systems in South Dakota?
TabascoMan's Avatar - Comment posted on 01/15/2008 14:32
TabascoMan
Dear bureaucrats,

F-CK OFF!

Yours truly,

Consumer
Quazy v2's Avatar - Comment posted on 01/15/2008 14:39
Quazy v2
I am thinking that this may be targetting games like Second Life where people are trading money tax-free and not DLC. I can't see how they could add another tax onto DLC because you are "buying" DLC with non-currency points like MaxVest said. Plus the points when you buy them are already taxed. If they did tax DLC it would be like taxing the watch a little kid gets by sending in 100 cereal box tops, when he already paid the tax on the 100 boxes of cereal.
Samit Sarkar's Avatar - Comment posted on 01/15/2008 17:34
Samit Sarkar
Um...I pay sales tax on my PSN purchases — when I buy a Rock Band DLC song, it costs $2.16, not $1.99. You mean it’s not like that everywhere? Stupid fucking New York State.
Fading Star's Avatar - Comment posted on 01/15/2008 19:03
Fading Star
No thanks.
JonDarkwood's Avatar - Comment posted on 01/15/2008 19:58
JonDarkwood
God damn it. I am moving to Canada.
Trafalio's Avatar - Comment posted on 01/15/2008 20:02
Trafalio
Well, PSN has been taxing me since I've first bought something.
Here's the proof (money in $CAN btw):

Metallica Pack 1 (Additional Content) (1) (6,49 $)
Tax (1,82 $)
Queens of the Stone Age Pack 1 (Additional Content) (1) (6,49 $)
Tax (1,82 $)
12/22/2007 Payment from wallet 14,80 $
Bob Muir's Avatar - Comment posted on 01/16/2008 10:51
Bob Muir
Well, glad I'm not living anywhere near there. Until everyone follows their example. Then I'm fucked.
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