KenCougr

Patreon To Charge Sales Tax

Added 2020-06-19 04:39:33 +0000 UTC

I imagine you've all heard about it by now. Patreon is going to pull sales tax away from you folks on top of the Tier charges. It was bound to happen. Thankfully, Patreon has mechanisms in place to mitigate the pain as much as is reasonable.

Content providers, like me, are able to define what percentage of their content falls into taxable categories. Donations and Support contributions are not taxable, but things like downloadable content is likely to be taxable.

I took an assessment of my Tiers and based on comments I keep getting from folks, it seems most everyone is in here to support my ability to make art, and not specifically for the art. Odd as that sounds, I get it. I appreciate the heck out of it, too.

But, as I offer digital downloads as part of the Patreon, I really need to account for that so the watchful eyes see there is something they're getting a pound of flesh off of.

I've worked out that the Digital Download Reward is $2.00. The Exclusive portions of the Supporter and higher is another $1.00. I believe those are subject to sales tax. The lowest Tier is entirely support contribution.

So, expect to see Sales Tax on two or three dollars show up on top of your contributions. I'll take some more looks at how the pledge categories are set up and see if I can revamp the Patreon around to classify as 100% support. There is some language in there that says contributions given that don't aren't based on the posted Tiers is considered a contribution and not taxable. If not paying sales tax is really important to you, that's an option to look into.

More on the situation as the thinking goes on. I wouldn't blame anyone if they cut and run. We'll see how it goes.

No matter what, Thank You to you all for the support you've shown to me. You're terrific.

Coug'r