[Exekiel]

I have recently been running across players who don't seem to understand the minerealm income tax. I will explain it as simply as possible.

How Minerealm Tax Works

A Hypothetical Item worth 1000rc is sold


Income Tax - Purchaser pays 1000rc - Seller Gets 900rc - Gov't gets 100rc (Seller Pays Income Tax)

Now, If you /give a player 1000rc they get 900rc (This Matches )


Sales Tax - Purchaser pays 1100rc - Seller gets 1000 - Gov't gets 100rc (Purchaser Pays Sales Tax)

But if you /give a player 1100rc they get 990rc (This Doesn't )


Protip: If you want to get a certain amount of for your item do this divide the amount you want by .9 (for 1000rc this is 1111.1111...) or even easier (and marginally more profitable ), just add 20% (for 1000 this is 1200)

Source: 4 Years dealing with sales & income tax on a daily basis as an accounts manager & payroll officer


tl:dr? - If you are 'selling [Item] 1000rc' the purchaser will type /credits give 1000, you will get 900.

[Rokkrwolf]

Amen, good post.

[Prodigy9]

Isn't MR's tax a sales tax rather than an income tax? If you make a ton of credits from mining but never spend them, you won't owe taxes, but as soon as you start engaging in commerce the tax is applied.

[Exekiel]

There is a tax on mining blocks, you actually get .5 recurring creds per block :p.

But on a more serious note this is not intended to be a discourse on taxable income and exemptions but rather a definitive guide to taxation as applied to commerce.

I only posted this so that I can refer people here when they request more money for an item after I've paid them what they've asked for.

[Prodigy9]

My point was, if a sales tax is paid by the purchaser while an income tax is paid by the seller, it seems like it would be the purchaser who pays MR's tax (which seems to be more of a sales tax than an income tax).

[DrHetterscheidt]

My point was, if a sales tax is paid by the purchaser while an income tax is paid by the seller, it seems like it would be the purchaser who pays MR's tax (which seems to be more of a sales tax than an income tax).

The salesperson typically increases their price by the tax. If you bring up a candy bar for $1.00, they ring it up + tax, and that's what you pay. They usually don't take $1.00 and then take the tax from that later on. So I would say it's the seller's duty to sell at a price they are comfortable with AFTER tax.