The Costco Thread

[madguy30]

I'm a little surprised Cedar Rapids area doesn't have one.

Green Bay and Eau Claire, WI do.

 

[g4ce]

Pet prescriptions through Costco can save a ton of money too. My wife says she saved about $100 on the heartworm and flea and tick medicine for one dog. Definitely check it out if you have pets.

 

[CycloneCJ]

Y'all did convince me to get the Costco Credit Card after looking into the cash back %'s - it's superior than any of the other ones I have and with our recent shifting of most of our purchases to Costco, it's going to be a big W for the family.

Same!

 

[RamClone]

So Costco raises their membership fee to $65 and the state of Iowa smells blood in the water and decides to start charging sales tax on the membership fee? Annual charge last June was $60 and this year per my credit card statement it is $69.55 at 7% sales tax rate. Does not seem like something that should be taxed.

 

[BCClone]

So Costco raises their membership fee to $65 and the state of Iowa smells blood in the water and decides to start charging sales tax on the membership fee? Annual charge last June was $60 and this year per my credit card statement it is $69.55 at 7% sales tax rate. Does not seem like something that should be taxed.

They aren’t a non-profit to my knowledge. Why shouldn’t it be taxed? did they just eat the tax before and include it into the price to make a round number, but now to avoid having people upset about a $10 bump they say sales tax is being charged and letting people be mad at the state instead?

You buy a golf membership at a course and there is sales tax on that, basically the same thing. So I’m guessing they just hid it in the past.

 

[Turn2]

So Costco raises their membership fee to $65 and the state of Iowa smells blood in the water and decides to start charging sales tax on the membership fee? Annual charge last June was $60 and this year per my credit card statement it is $69.55 at 7% sales tax rate. Does not seem like something that should be taxed.

Generally speaking, memberships are going to be taxable if they offer nothing more than a discount. This idea was recently upheld in the South Carolina Supreme Court, where they decided Books-A-Million owes just under $250,000 in taxes, penalties, and interest on their membership fees. The court claimed that because the membership essentially gives members discounts on taxable transactions, the sale is taxable under state statute.