I received an email from Biznik, explaining why their rates are going up about 10%. Keep an eye out for how many other of your online purchases are about to get another tax:

“Washington State, like many states in today’s economy, is looking hard at areas of ambiguity within their tax code. The state has just enacted legislation that became effective July 26, 2009 clarifying how digital products and services are to be taxed. Electronic downloads of music, movies, and other standard information have always been subject to sales and use tax. However, with the passage of this bill, all digital products and digital automated services will be subject to these taxes. Biznik is classified under the law as a Digital Automated Service (ESHB 2075 section (5)(a) – the newly enacted legislation). Consequently, we are required to collect and remit appropriate sales and use taxes on membership fees for customer’s located in the state.

How does this affect you? 

Biznik’s membership dues fall under the definition of taxable digital automated service. Starting on July 26, 2009, Washington Sales Tax at your local rate will be added to your recurring monthly membership fee.

The sales and use tax in the zip code is 0.095%. Therefore, $0.95 will be added each month to your $10 monthly membership fee.

Thank you for participating in the Biznik community!

Lara Feltin
Biznik Cofounder
[email protected]