OAKLAND — California Attorney General Rob Bonta today issued a statement in response to Senate Bill 478 (SB 478), a bill that he sponsored, being signed into law by Governor Gavin Newsom. Coauthored by Senator Bill Dodd (D-Napa) and Senator Nancy Skinner (D-Berkeley), the legislation will prohibit hidden fees (also called ‘junk fees’) in California beginning on July 1, 2024.
I’m guessing it might be because tax rates vary so wildly in the US. Every state has their own percentage of state taxes, and then many counties and cities have their own specific tax rate on top of that.
A company might sell a product nationwide, and it’s easier for them to do national advertising that their product is $100 + local taxes than it is for them to make hundreds upon hundreds of different local ads with a precise dollar amount.
I’ve no doubt it’s easier for companies, but I don’t really care about making advertising easier for them. I prefer to make life easier for consumers. Regional taxes and fees and levies aren’t unique to America. How they handle this in other countries is either regional advertising or normalising the price nationally and potentially eating a loss in some high tax areas. The price can also settle a little higher in some regions if the product has low elasticity of demand. Either way, it gives consumers much more information up front.
I’m guessing it might be because tax rates vary so wildly in the US. Every state has their own percentage of state taxes, and then many counties and cities have their own specific tax rate on top of that.
A company might sell a product nationwide, and it’s easier for them to do national advertising that their product is $100 + local taxes than it is for them to make hundreds upon hundreds of different local ads with a precise dollar amount.
Sales tax varies per county in many places so I don’t see advertising including tax in the price being a thing any time soon here.
*Per city
* per location in part of city (overlapping districts), and also dependent upon the type of merchandise being sold.
Even more fun!
Why should the laws be specifically designed to make things easier for advertisers to the detriment of everyone else?
??? Tax variations among regions were not created to benefit advertisers
Allowing advertisers to avoid accounting for tax regions in their advertising absolutly is.
I’ve no doubt it’s easier for companies, but I don’t really care about making advertising easier for them. I prefer to make life easier for consumers. Regional taxes and fees and levies aren’t unique to America. How they handle this in other countries is either regional advertising or normalising the price nationally and potentially eating a loss in some high tax areas. The price can also settle a little higher in some regions if the product has low elasticity of demand. Either way, it gives consumers much more information up front.