Sales Tax Announcement (Patreon)

Hey Naish!

We wanted to give you an update on some changes that may affect your subscriptions—or more accurately—part of your subscriptions. Due to new laws passing in several countries and US states, Patreon will be required to start charging sales tax starting July 1st.

Based on location, some members will be charged sales tax and some will not. 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. In many cases, it will be even less.

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. For example, only about half of states right now are charging sales tax for bonus content (such as The Champagne Room RSS Feed or Cannon Fodder Friday), and only a small minority of states charge sales tax for community access like our Members-Only Discord server. That fraction of extra money that you’d be paying each month goes to Patreon, and then they are required to pay your state and local government the cumulative sales tax collected each quarter.

We have been working closely with Patreon on the process of identifying what most of you are subscribing for and where the value of your money is most likely going. We use this system to make sure that things like physical goods take a back seat to things like bonus content and just flat out supporting your good buddies, which we know is the most important thing for most of you wonderful people.

In the next few days, if you’re in a location where sales tax will be required, you should receive an official email from Patreon with more information about this. We wanted to make sure you were aware of these changes way ahead of July 1st when they go into effect.

If you have questions, you should be able to find answers in this help center article here. If you still have questions, the best place to get an answer is from Patreon’s customer support team here.

I'm sure most of you feel the same way we feel: Yay! Sales Tax! But sadly it was bound to happen sooner or later. We promise to continue spinning gold so that you feel your membership is more than worth some extra pocket change for THE MAN every month. And like we always say, if you're still upset, blame Matthew.

Thanks and we love you.

-The Glass Cannon Network