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A double sales tax? No, thank you.
Amazon has finally jumped on the artificial currency bandwagon. As a Kindle Fire owner, I received 500 free coins, thanks Amazon.
However, the cons outweigh the pros in my particular situation. Amazon's 10% discount on coin purchases is overshadowed by a double sales tax.
At first, I thought Amazon coins would be like Wii Points on the Wii Shop Channel. I thought wrong. For example, on the Wii, 2000 points will cost $20 + Sales Tax = $21.50. When using points on the Wii Shop Channel, a game sold for 500 points will cost 500 points. No sales tax.
Recently I purchased Minecraft Pocket Edition using coins. On that day, it was on sale for $3.99 or 399 coins. After my purchase my coin total dropped from 500 to 75. My order confirmation e-mail revealed that 26 coins in sales tax was added to the total. I'm glad that I was able to experiment before actually investing real money.
It seems very unnecessary to pay Amazon sales tax when requesting a currency conversion (dollars to coins). Then pay sales tax again when spending the coins.
However, if you like the idea of using coins to limit the amount of money that you spend on apps and games, might I suggest buying a reloadable debit card? Also you could just buy gift cards and stop spending when they are gone.
If you, like me, live in one of the states that requires Amazon to charge sales tax; avoid double sales tax, don't invest in coins. Use your credit card, like you do now, for all your Kindle content.
May 2013 · Unknown