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Bill to ban hidden fees in California signed into law

oag.ca.gov

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Re: Bill to ban hidden fees in California signed into law

#471

Earlier quoted context omitted.

“Local” advertising is not practical. There are 13,000 sales tax jurisdictions in the US.

Sounds to me like the US needs harmonized tax laws?

Unfortunately, that is not a political reality. The federal government does not have the power to enforce sales tax rules on the states.

Re: Bill to ban hidden fees in California signed into law

#472
post #461

Earlier quoted context omitted.

Tax depends on the location the item is shipped to.

So if you buy groceries and then live in a different tax area, you have a customs office to pay the extra tax?

No. Sales tax in the US is determined based on the location where the customer takes possession of the merchandise.

Re: Bill to ban hidden fees in California signed into law

#474

Earlier quoted context omitted.

> Lots of local government means taxes change over smaller distances in America than most of the world. > cultural distrust of taxation and government > a decreasing tendency to use cash > higher income per capita Really don't see how any of the points above are an obstacle to putting the ~actual~ price of a product on paper. > Also, most retailers here use paper labels Great! Makes it even easier to printout the act…

You can't run a national "$5 footlong" or "dollar menu" national ad campaign if some states charge taxes on prepared food and some don't, and of those states that charge taxes, some require tax inclusive pricing and some don't. Tax-inclusive pricing isn't something that can be solved with a state law.

>You can't run a national "$5 footlong" or "dollar menu" national ad campaign if some states charge taxes on prepared food and some don't, [...]

You can, if you change your prices in every state so that with added taxes, it adds up to $5 for the consumer. We don't have to accommodate our system of sales taxes to make it more convenient for national corporations to make $5 foot-long campaigns.

Re: Bill to ban hidden fees in California signed into law

#475

Earlier quoted context omitted.

Even if you have a big asterix there for that special tax excluded from the price occasion it will already make lives a lot easier. Such a weird hill to die on.

An even bigger issue is internet purchases and car purchases. Cars are taxed at the local sales tax rate of where the buyer lives. Internet sales are taxed at the state sales tax rate where the buyer lives.

Same in Europe where our ‘state-sized’ countries have different taxes but Amazon has no issue applying a 21% sales tax real time when I order from their .de site where a 20% tax is the local norm.

Re: Bill to ban hidden fees in California signed into law

#476

Earlier quoted context omitted.

The store is just in a single town, it is trivial for them to fix their labels. For the user on the other hand it isn't trivial to figure out the tax rate for every store they visit as they travel since as you admit it changes everywhere.

For a big corp, they want to advertise nationally. "$1 hamburgers!" or "$799 refrigerator!". You can't make a national ad if you have to have precise pricing. Not the strongest argument, but there it is. A college friend worked at a pizza place that straddled a county line. One county had its own sales tax; the other did not. The register was in the back of the store to take advantage of this (the location of the reg…

The refrigerator company can just sell for $799 and take the taxes out of that. Or sell for $899 and take the taxes out of that.

Re: Bill to ban hidden fees in California signed into law

#477

Comments that are bringing up taxes (which are totally exempted by this bill anyway) and tips (with one small caveat) are completely missing the point. You can have a debate about how to display those items on a price list, but everyone knows about them and they are expected. The whole point of this bill is to prevent bait-and-switch, where loads of unknown or variable fees are tacked on after the price is initially…

In Washington State, Gov Inslee imposed the equivalent of a $.50 per gallon tax on the oil companies. The oil companies raised the WA gas prices by $.50 per gallon. Inslee blamed the price rise on the greedy oil companies. The taxes should be a separate line item on all purchases, so people can see what the taxes are.

The taxes are on the companies, not the people. If the companies want to pass it along to the people while swimming in record profits, instead of paying with some of those record profits, as the people want and intend: then that is a choice they must consciously choose, and yes, doing so makes them greedy.

I mean, they have a lot of money and want more. That's greed. You can argue that you're personally okay with them being greedy, or even channel your inner Gordon Gekko and say that you personally think greed is good, but you can't argue it isn't greedy.

Re: Bill to ban hidden fees in California signed into law

#478

Earlier quoted context omitted.

Yes, books have RRP (recommended retail price). That price includes all taxes.

Gotcha. In the US, if you tried to keep that system, you’d need a different printed MSRP per tax nexus and books in warehouses would no longer be fungible.

Not really, that's just a manufacturer-recommended price for the seller to charge, the seller can put whatever they want on the actual price tag.

Re: Bill to ban hidden fees in California signed into law

#479

Earlier quoted context omitted.

An even bigger issue is internet purchases and car purchases. Cars are taxed at the local sales tax rate of where the buyer lives. Internet sales are taxed at the state sales tax rate where the buyer lives.

Same in Europe where our ‘state-sized’ countries have different taxes but Amazon has no issue applying a 21% sales tax real time when I order from their .de site where a 20% tax is the local norm.

A city is much smaller than a state, and we're talking about advertisements here. Of course they charge you the correct amount.

Re: Bill to ban hidden fees in California signed into law

#480

Looks like Ticketmaster, AT&T, Comcast Xfinity, Hotels with mandatory "resort fees", airlines, banks, car dealerships and rental agencies, realtors, landlords, etc. may have to make some changes. Deceptive pricing is extremely annoying, as are stealth price increases.

Airlines already have to disclose all fees. I don’t pay a cent more than the price listed on google travel.

Interesting - yet somehow I was hit with a surprise baggage fee fairly recently?
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