I wanted to give you an update on some changes that we’ll be seeing which may affect some of your pledges. Due to new laws passing in several countries and US states, Patreon will be required to start charging sales tax on some pledges starting July 1st.Less than half of all patrons will be charged sales tax, and for most, the amount will be very small. For example, sales tax rates in the US range from 4% to 11%, so on a $5 pledge, that would be between 20 cents and 55 cents.Whether or not you will be charged sales tax depends on your location, and what is considered taxable there. Not every pledge is taxable, not all benefits are taxable in every location, and sometimes only a fraction of a pledge will be taxable. The money that Patreon collects as a result of these laws are paid directly to local governments.
So, expect your pledge prices to rise. They also have this bit to add:
I’m working closely with Patreon to ensure I’m able to save you as much money as possible when it comes to sales tax - which is not something that’s possible with other platforms.
Which feels like an odd detail to add. Like, what "other platform?" Oh right. SubscribeStar. Well, I'm on SubscribeStar, and at the risk of costing Jack Conte his second yacht, I don't really care which one you use. In fact, I don't think I can pull funds from SubscribeStar until I hit five subscribers. And their fees haven't changed. I don't know why. But if you're bothered by the price hike tax hike and you want to continue backing me, I suggest you do the following:
- Cancel your Patreon subscription to me before June 1st.
- Become a Subscriber after June 1st
That way you can avoid being "double booked." If you make a mistake, I'll see if I can get your money back to you, somehow. You can also do this before July 1st, evidently.
If you're happy with Patreon and don't mind the possibility of an extra couple of cents coming off every month (I don't think it's universal, so many of you probably won't get an additional fee), then by all means stick with it. And I appreciate every one of you and the patience you have in putting up with all the surprising amount of hassle in what is, by all rights, a convenient way to set-up a monthly donation.
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