Question about sales tax..charged based on full price BEFORE billed total? What ?

[dubber deux]

I noticed on my past two bills that even though I actually paid two different totals that I was changed the exact same sales tax each time. I thought this HAD to be a mistake, since when you pay tax you pay based on the actual amount you PAY not on what something costs BEFORE the total has been calulated.

I called CS. The rep tried to tell me that I have to pay the tax based on the pre discount total. This clearly sounds wrong. Can anyone point me to where it states in the contract that you pay any tax based on PRE totals not the actual BILLED total.

Seems the CSR can't answer the question.

[LarryFlowers]

You are always responsible for state taxes on the FULL AMOUNT... before discounts. I have never lived in a state that didn't tax that way. States look at that as an issue between you and your supplier... they are entitled to the full amount.

Some states also include labor in that.


I noticed on my past two bills that even though I actually paid two different totals that I was changed the exact same sales tax each time. I thought this HAD to be a mistake, since when you pay tax you pay based on the actual amount you PAY not on what something costs BEFORE the total has been calulated.

I called CS. The rep tried to tell me that I have to pay the tax based on the pre discount total. This clearly sounds wrong. Can anyone point me to where it states in the contract that you pay any tax based on PRE totals not the actual BILLED total.

Seems the CSR can't answer the question.

[dubber deux]

Just out of curiosoity I would assume that a federal tax is included as well ?


I have to say that I don't believe with other cable and sat bills I have paid the pre billed tax cost.

I'm not saying this isn't psooible but seems odd to me.

[David MacLeod]

cable, satellite, does not matter in Maine. based on prediscount price.

[dtremain]

I hope I can say this clearly.

If a price is reduced for everyone (something is on sale at a store, for example), you only pay sales tax on that reduced price.

But, if you get a single, individual discount (ie. you use a coupon or get some sort of other "special discount") you pay the sales tax on the undiscounted amount.

I hope that helps.

[dubber deux]

I hope I can say this clearly.

If a price is reduced for everyone (something is on sale at a store, for example), you only pay sales tax on that reduced price.

But, if you get a single, individual discount (ie. you use a coupon or get some sort of other "special discount") you pay the sales tax on the undiscounted amount.

I hope that helps.

Thanks for trying to make sense of this subject for me. I hate to be a nit picker but don't ever remember paying a tax this way, even for other related services.

I would suggest that D* and other providers make it clear how taxes are being calculated on the bill on the reverse side.

[frederic1943]

Or you could move to Oregon. We don't have a sales tax. But our income tax is higher because of that.
The best way is to move to Vancouver, Washington and work there. Washington has no income tax but a high sales tax, but Portland, Oregon is just across the river with a large shopping center right at the end of the bridge with no sales tax.:D

[The Merg]

Some states also include labor in that.

Acutally, most states so not allow sales tax on labor as it is a service and not a product. Take a look at your auto repair bills. The sales tax calculated will not include the amount for the labor that was charged.

- Merg

[LarryFlowers]

The laws are a hoge poge across the country... for example, a painters labor in New Jersey is taxable... who knew?


Acutally, most states so not allow sales tax on labor as it is a service and not a product. Take a look at your auto repair bills. The sales tax calculated will not include the amount for the labor that was charged.

- Merg

[bobnielsen]

When I moved from AZ to WA, I figured they would have some other taxes high to make up for no income tax. Sales tax on labor was a surprise to me, however. Even California didn't tax labor. However, the only taxes I have paid for Directv have been on equipment and lease fees.

Edit: There have been a few pleasant surprises, however. I had a package sent directly from a local chain store to my new grandson in Portland, OR. Because of the destination (no sales tax in OR), there was no tax applied. I remember there have been some changes regarding which jurisdiction's tax rate was applied, but this has been in place since long before that. I heard that it is a way to get some out-of-state business.

In terms of overall taxes, I was better off in AZ (but there was the summer air conditioning bill....)

[evan_s]

When I moved from AZ to WA, I figured they would have some other taxes high to make up for no income tax. Sales tax on labor was a surprise to me, however. Even California didn't tax labor. However, the only taxes I have paid for Directv have been on equipment and lease fees.

Thats one thing that is definitely true. They always manage to get their money somehow.

[JLucPicard]

Just out of curiosoity I would assume that a federal tax is included as well ?


I have to say that I don't believe with other cable and sat bills I have paid the pre billed tax cost.

I'm not saying this isn't psooible but seems odd to me.
Usually, when I've bought, for example, a stereo from Best Buy that I have a 10% discount on, the entire order is rung up, including sales tax, then the 10% of merchandise discount is applied. I always thought it was kind of a wash when the discount was close to the tax rate because of that.

As for federal taxes, there are no federal taxes (access fees, whatever it's called on phone/cable bills). It would only be state (and maybe in some cases local???) taxes on a DirecTV bill.

[dtremain]

Thanks for trying to make sense of this subject for me.You're welcome.

[dtremain]

The laws are a hoge poge across the country... for example, a painters labor in New Jersey is taxable... who knew?The sales tax in New Jersey is crazy because it was drafted in a hurry to fund school systems which the state court had ruled as underfunded.

The legislature, in its rush, defined the sales tax by listing those things which would not be taxed rather than those which would. Therefore, all sorts of things were overlooked and are taxed that seem inconsistent with things that are not.

I'm aware of this because, at the time, I was doing news reporting in New Jersey.

[l8er]

In fact, in most areas, if you have a promo for a food item at a fast food restaurant, you usually get charged tax on the regular price of the food item before the discount is taken.

I'm guessing the taxing authorities look at like you're getting the whole or regular service from DIRECTV and should be taxed on that, even if they (DIRECTV) is/are giving to you at a reduced rate. (Same for fast food promos).

[TBlazer07]

This is how it was explained to me by the local State sales tax bureau:

Give a fast food restaurant a "2 cheeseburgers for the price of 1" coupon and you should be charged the sales tax on the FULL price of the 2 .

Go to the same fast food restaurant when they are having an advertised "50% off all cheeseburgers today only" sale and you will only pay sales tax on the after discount amount.

Lots of merchants aren't aware of this and don't do it correctly but if they should get audited (or narc'd by a competitor) they will have problems with the tax guy. MANY years ago a business I worked for went through this with the State sales tax bureau and, sad to say, it got quite expensive.




Thanks for trying to make sense of this subject for me. I hate to be a nit picker but don't ever remember paying a tax this way, even for other related services.

I would suggest that D* and other providers make it clear how taxes are being calculated on the bill on the reverse side.

[BKC]

I don't have a sales tax charge on my bill :)

[adn]

whenever you are getting promotional discounts they appear as a separate line item.
i.e. Choice Xtra is currently $60.99 but new customer get it advertised at $39.99 which is after the $21 discount.
D* doesn't change the package price to reflect $39.99 for Choice Xtra, they just give a $21 discount. So if you live in a state that charges sales taxes for D*, you will be taxed on the line items at full cost and then get your discount.

hope that clarifies the situation just a little more

adn

[Drew2k]

I hope I can say this clearly.

If a price is reduced for everyone (something is on sale at a store, for example), you only pay sales tax on that reduced price.

But, if you get a single, individual discount (ie. you use a coupon or get some sort of other "special discount") you pay the sales tax on the undiscounted amount.

I hope that helps.I've been to several retailers in NY who do not follow this rule ...

Just as an example, Best Buy charges full sales tax on the pre-discounted item, while Kohl's charges sales tax after the item or even full-sale discount was applied.

[Jhon69]

Or you could move to Oregon. We don't have a sales tax. But our income tax is higher because of that.
The best way is to move to Vancouver, Washington and work there. Washington has no income tax but a high sales tax, but Portland, Oregon is just across the river with a large shopping center right at the end of the bridge with no sales tax.:D


Also you have to add on Oregon's higher property taxes also.:eek2:;)

[Jeremy W]

You are always responsible for state taxes on the FULL AMOUNT... before discounts.
Not in Michigan. We also don't pay any taxes on satellite TV service, only on the lease fees.