Stinger is absolutely correct. Collecting sales tax and failing to file and pay it to the state would be fraudulent and the state of Texas probably would vigorously disapprove.
As for the logic behind collecting the sales tax as part of the the claim, one would have to look at the specific law in that state since sales tax mechanisms vary widely from state to state. Some states have no sales tax at all, some have brutal sales tax rules. Here's what Texas has to say about their system:
1. Who is required to hold a Texas sales and use tax permit?
You must obtain a Texas sales and use tax permit if you are engaged in business in Texas and you:
• sell tangible personal property in Texas;
• lease tangible personal property in Texas; or
• sell taxable services in Texas.
Please see Rule 3.286 and publication 96-259 Taxable Services (PDF, 1.2MB) for more information.
The requirement to obtain a Texas sales and use tax permit applies to individuals as well as corporations, firms, partnerships, and all other legal entities.
2. What is tangible personal property?
The statutory definition for "tangible personal property" is "personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses." See Sec. 151.009.
3. What is engaged in business?
A person or a retailer is engaged in business in Texas if any of the following criteria are met:
(A) maintains, occupies, or uses an office, place of distribution, sales or sample room, warehouse or storage place, or other place of business;
(B) has any representative, agent, salesperson, canvasser, or solicitor who operates in this state under the authority of the seller to sell, deliver, or take orders for any taxable items;
(C) promotes a flea market, trade day, or other event that involves sales of taxable items;
(D) uses independent salespersons in direct sales of taxable items;
(E) derives receipts from a rental or lease of tangible personal property that is located in this state;
(F) allows a franchisee or licensee to operate under its trade name if the franchisee or licensee is required to collect Texas sales or use tax; or
(G) conducts business in this state through employees, agents, or independent contractors.
See Rule 3.286.Source:
http://www.window.state.tx.us/taxinfo/sales/faq_permit.htmlSo this is my take on the logic of collecting sales tax for an extortionate claim: Since Getty's claim involves the purchase of a retroactive license, it qualifies as a sale of tangible property. The license for a photograph is tangible property because a photograph qualifies as "personal property that can be seen..." Getty may not directly have operations in the State of Texas, but they are engaged in business because the company "conducts business in this state through employees, agents or independent contractors," meaning their copyright trolls.
Getty has apparently created a form of extortion that is subject to sales tax under Texas state law by insisting on the purchase of the retroactive license, which is a sale of tangible personal property. This may be an unintended consequence of their current copyright trolling business model. To play it safe and give the extortionate demand an air of legitimacy, their legal henchmen have probably decided that it's best to collect the sales tax, file the paperwork with the state, and pay whatever amount they collect.
Whether or not they're actually filing and paying is an entirely different question, and I think it's one worth the price of a call. I'm with Buddhapi on that. Give them your best Southern hospitality drawl, Buddhapi. They'll be glad to help.
If they're actually filing, this would be one way of finding out how much money they're raising in the state Texas. The state would have all the records on the total amounts for the filings and how much tax was collected. I'm not sure the state of Texas shares that information freely for any given account holder, but it wouldn't hurt to ask.
Topic: Getty Images Extortion Letter with Sales Tax (Read 20365 times)