Background Certain publishers have recently decided to change from a wholesale to agency pricing model. In an agency pricing model the retailer, in this case Diesel eBook Store, is no longer the seller of record, rather we act as the "sales agent". As such we do not set the selling price for those titles and are obligated to collect sales tax based on the publisher's state tax reporting obligations and the taxability of digital books in those states. Since any type of rewards or bonus program indirectly affects an items price, we are required to restrict customers from redeeming rewards points/dollars on any "agency title" (indicated by their lack of the grey reward icon underneath the title). Many publishers have chosen not to operate under this model and their titles will continue exemption from sales tax and continue participating in the Diesel Rewards program.
Which publishers are changing? Listed below are the publishers now operating under the agency pricing model and the states in which they charge sales tax.
Hachette: AL, AZ, CO, CT, DC, HI, ID, IN, KY, LA, ME, MS, NC, NE, NJ, NM, SD, TN, TX, UT, VT, WA, WI and WY
Harper Collins: All states other than AK, AL, AZ, DE, HI, MT, NH, NV, OK, OR, SD, VT and WY
Simon & Schuster: All states other than AK, DE, MT, NH, and OR
Macmillan: AZ, CO, CT, DC, HI, IN, KY, ME, MS, NC, NE, NJ, NM, SD, TN, TX, UT, VT, WA, WI and WY
Random House: All states other than AK, DE, MT, NH, and OR
Which publishers are not impacted by the change? If a publisher is not in the list of five above then it's business as usual. Just a few that haven't changed how they offer titles to retailers include but are definitely not limited to: Harlequin, Kensington, Sam Hain, Ellora's Cave, Wiley & Sons, Author House, Smashwords, Mundania
How is tax calculated? An item is subject to sales tax in the state to which the title is downloaded and is derived from the credit card billing address. The tax rate applied to your order may vary by locality depending whether your city, county or town levy's any taxes in addition to state tax. No sales tax is charged when purchasing gift certificates; however, purchases paid for with gift certificates may be subject to tax. If tax has been charged on any portion of your order and you need to take advantage of your tax exempt status, lease bring this to our attention at Customer Service.