A Prime Example of Bungled Bundled Transactions

Stephen Kranz was co-author of this bylined article which used a recent Iowa administrative ruling to show the difficulty of applying sales and use tax to bundled transactions of taxable and nontaxable items. In ruling that the sale of Prime Video was taxable as part of an Amazon Prime membership, the authors wrote, Iowa “got the answer wrong ... Because the price of Prime Video is known, there is no clear justification for not removing it from the products in the bundled transaction.”