Patreon tax changes in America.

Fran did a heartfelt video about this as well. Those of us that support all do you wonderful creators aren't happy about it either. But that won't stop those of us that appreciate all the collective hard work from continued support.

Phew! I live in Oregon ... nothing to see here :-)

We're back to taxation without representation. Oh it's there on paper , but just look at 'em. Sigh. :(

Michael Thompson

FYI: When I logged in tonight I was asked to supply my Canadian province, We pay $15% on everything here. While Canada is indeed in North America, along with Mexico, we sure aren't Americans! ;)

PayPal charges processing and card fees too. Patreon is the best choice because it provides this easy communication system and lets us chat and discuss things.

Big Clive

So. We love clive. Should we go to $1 and use the Paypal button❓

Cerity

Patreon has lots of little "things". Like for instance, when I get an email notifying me of a reply to a comment it takes me to the full page and not to the area with the actual comment. I think you can enable email notifications of replies.

Big Clive

The way they probably see it is that by releasing the videos early on Patreon you are buying a service. The way I see it is that you are supporting the channel and helping check the videos and decide which ones get released.

Big Clive

There are three certain things in my life: taxes, eventualy death and me burning my fingers again during soldering....

Hub Rijcks

It varies by state (and potentially by city). The sales tax rate is 8.25% where I am in Texas--the state of Texas gets 6.25%, and local municipalities are allowed to collect up to 2%. And as you can imagine, the local municipalities are more than happy to get that 2% :) While I believe there are some rural areas in Texas where the sales tax rate is less than 8.25%, I can't think of any off the top of my head.

Dahan

I wonder what the typical American tax rate will be for the states that this affects. Here in Ireland, VAT is 23% on sales and services, e.g. I pledge $1 to 10 creators and am charged $2.30 VAT.

Seán Byrne

Fortunately it doesn't apply in my state.

Gadgetman

That's ridiculous. My understanding is that unless you're receiving a physical good in exchange for your "payment", sales tax doesn't apply. For example, when I was a field tech, I didn't charge sales tax on labor, unless there were parts involved.

David K

No worries Clive, we will still support you.

Chris Muncy

If you have a VPN, it is very easy to avoid paying ANY tax whatsoever! Not that I would do such a thing of course. Sadly, Patreon does not seem to have a subscribe to thread feature to I may not see any replies.

Hey you have to do what you have to do. That is not going to change my support.

Charles Bruckner

Few find good in most governments' taxation methods, especially true in UK and US, and how tax is implemented, myself included. Think it is the apathy of Television and now internet media consumption en masse that is stopping any public uprising. Bit like alcohol used to do a couple of centuries ago.

Robert

Which state is that? Asking for a friend who likes VPNs.

just_noXi

Surely if your channel is educational, which it clearly is, it should be tax exempt? Education can't (well, shouldn't) be taxed.

I’m in Australia and I’ve noticed when Patreon is billed, they always charge me in USD and with tax. Nevertheless I love that you actually give a shite enough to tell people this stuff. I’ll keep on supporting you for as long as I can!

Here in California there is the "use tax" that is for businesses purchasing equipment from out-of-state but individuals are pressured to ("voluntarily") pay the tax. As of a few years there's inter-state agreement on mutual sales-tax...

Martel DuVigneaud

One of life’s great certainties, if something starts creating enough revenue, the Government will come up with a way to tax it.

Jamie Whitehorn

Not really the American government—it's the individual state governments expanding their definitions. More mischief arising from the SCOTUS's reversal of long-standing precedent and allowing state governments to reach beyond their borders. It's especially noxious since every state, and frequently individual counties and cities within the state, have their own tax rates and definitions of what items are taxable. The rules about what's subject to sales tax and not are incredibly arcane. Just for example, if you get a salad at the salad bar at Whole Foods here in Washington State, they would have to charge sales tax if you picked up the plastic fork before checking out, but not if you pick up the plastic fork after you check out. It's absurd. Where I grew up in Ohio, the rule for fast-food restaurants was that take-out was not taxable and eat-in was taxable.

Paul Ste. Marie

Curious, I searched Patreon and found a list of the states which they will and will not collect tax starting on 1st July. Not Collecting: Alaska, Delaware, Florida, Georgia, Kansas, Louisiana, Massachusetts (I'm surprised on this one!), Michigan, Mississippi, Missouri, Montana, NH, Oregon and Tennessee.

Fortunately Im in one of the states that doesnt feel the need to tax supporting online content creators. Not that it would change my support, I find your content quite a value and enjoyable.

Myrk

In Europe it means that the Patreon income doesn't contribute to the threshold where I'd have to start preparing a VAT return four times a year. That's a good thing, because I detest paperwork.

Big Clive

Don't say that, Australia has a "Goods and Services Tax", I swear this isn't a service :-)

Berkeloid

If tax has already been collected from the payments you receive, does that mean you don't have to pay tax on them again yourself? Some countries let you get things tax free if you can show that another government has already collected tax on the amount, depending on what it is (income, share dividend, etc.)

Berkeloid

Odd.... so they're taxing this as a product, not a service? Supporting a YouTuber definitely seems much more like a service to me, which shouldn't incur sales tax AFAIK. Either way, I'm definitely sticking around. :D

Brooks Andersen

I'm here and will be as long as I can and however is best to support the channel. :)

Martel DuVigneaud

Yes indeed. And providing less and less in return.

Big Clive

Yes it is. Nothing compares to the ease of communication even if they do seem a bit top-heavy.

Big Clive

Can I just throw this out there, I hate the Government. Always trying to squeeze every penny out of us. :(

Dave Chassy

Is Patreon still the recommended way of supporting the channel?

c