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California: Sales tax on receiver fee(s)?

Discussion in 'DIRECTV General Discussion' started by trainman, Feb 22, 2013.

  1. trainman

    trainman Hall Of Fame

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    Jan 9, 2008
    Sherman...
    The sales tax line item on my February bill is $0.54 -- that's 9% of $6.00, which would seem to indicate that the tax is being charged on my receiver fee.

    In January, and on every bill prior to that, the sales tax line item was $0.00.

    I didn't make any changes to my account in the past month.

    Is this a case of California sales tax law having changed, a case of DirecTV's interpretation of California sales tax law having changed, or an error?
     
  2. the future is now

    the future is now AllStar

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    Jun 9, 2010
    Los Angeles
    i have had this fee since i joined in 2008 and i'm in the Los Angeles area.

    it really is not that bad as i'm sure most people are paying more in taxes for satellite.
     
  3. chevyguy559

    chevyguy559 Fresno State Bulldog!

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    Sep 19, 2008
    Fresno, CA
    I am charged a whopping $.98 in sales tax....compare that to the $5-10 in taxes and FCC fees I was paying when I had TV service with Comcast and I'm happy :D (funny now that I only have Comcast internet, there are NO taxes/fees :lol:)
     
  4. jimmie57

    jimmie57 Hall Of Fame

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    Jun 26, 2010
    Texas City, TX
    My sales tax on the whole bill

    Sales Tax $7.04
     
  5. trainman

    trainman Hall Of Fame

    1,619
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    Jan 9, 2008
    Sherman...
    Hmm, sounds like they must have been doing a complete audit on people's accounts when they started charging the RSN fee, then. :D Thanks.
     
  6. Lugnut

    Lugnut AllStar

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    Feb 11, 2013
    Eagle, Idaho

    I don't know if this is California-specific, but I did notice that in the last month or so, the internal billing shows a tax charge for the primary receiver, but then when the credit is issued against it to make it free, it's sans tax credit. This is definitely a new thing.
     
  7. ACR_Ted

    ACR_Ted New Member

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    May 11, 2010
    Same here in Arizona - the bill that just came shows 55 cents as sales tax, which was never charged before.

    More important though - DTV charged me twice for the "Advanced Receiver-DVR Monthly" fee of $10.00, which used to be credited back to me. Guess I will play CSR roulette tomorrow...

    Ted
     
  8. Jacob Braun

    Jacob Braun King of Awesome

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    Oct 5, 2011
    Tulsa, OK
    No longer crediting the tax of the primary receiver is new, due to new tax laws.
     
  9. acostapimps

    acostapimps Hall Of Famer

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    Nov 5, 2011
    Illinois
    We just had a close call on voting for taxes on satellite here in Illinois, Just because comcrap was doing it and encouraging politicians to do the same to us, But unfortunately I'm paying comcrap Internet sales tax and my huge state tax on my sprint bill.
     
  10. wilsonc

    wilsonc Legend

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    Aug 22, 2006
    You shouldn't be paying sales tax on your Comcast internet service. Federal law forbids taxes on internet service. Do you have basic TV service on your Comcast account to qualify for a lower rate for internet service? That would be taxed.
     
  11. damondlt

    damondlt New Member

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    Feb 27, 2006
    Newfoundland...
    Same here in PA, We pay 6% Sales tax on the whole bill.

    $7.98 is what I pay per month with the package and equipment I have in my Signature.
     
  12. Justin23

    Justin23 Hall Of Fame

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    Jan 10, 2008
    Are you sure about this? I have standalone Internet service from BrightHouse in Orlando and there is "State Sales Tax" on the bill.
     
  13. joshjr

    joshjr Hall Of Fame

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    Aug 2, 2008
    NE Oklahoma
    Yeah, I questioned it and all I was told was to contact my state legislature lol. Started in January where they quit crediting the tax on the primary receiver. How do you charge tax on something that is credited back? Its a zero balance to charge tax on. I dont get it.
     
  14. Justin23

    Justin23 Hall Of Fame

    1,218
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    Jan 10, 2008
    Some states have D* charge a "Use Tax Adjustment" when placing the order on the value of the free standard installation. It's not charged when there is an install few since the tax is already calculated.

    In Florida I noticed the "Communications Service Tax" is now missing...
     
  15. damondlt

    damondlt New Member

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    Newfoundland...
    I have Blue Ridge Communications in PA and have Internet only, and I have NO taxes as well.
     
  16. Justin23

    Justin23 Hall Of Fame

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    1
    Jan 10, 2008
    Is there a modem fee on your charges...or just pure Internet charge?

    I'm wondering if they are collecting sales tax on the modem fee that appears on the BH bill.
     
  17. damondlt

    damondlt New Member

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    Feb 27, 2006
    Newfoundland...
    No its just one charge

    The Price of my G10 service is $57.95 and thats what I get charged, They provide the modem as well.

    Now when we had Phone service and TV service there was a State sales tax, Township Tax ,Fcc tax and 911 fee, Its was about $15 added to a $169 bill.
     
  18. armophob

    armophob Difficulty Concen........

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    Nov 13, 2006
    Fort Pierce, FL
    Not here, $20.02 on my latest bill
     
  19. Lugnut

    Lugnut AllStar

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    Feb 11, 2013
    Eagle, Idaho
    I was about to say... a whole lot of subscribers in Florida must be doing backflips of joy :lol:
     
  20. bobcamp1

    bobcamp1 Icon

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    Nov 8, 2007
    Simple.

    D* charges you a $6.00 usage fee.
    The state taxes the usage fee.
    D* separately credits you back the $6.00 for the primary receiver, but the state still taxes you for using the receiver. That's because you're still using the receiver for that month. You didn't revoke a sale and return the product. You got a separate credit back that happens to match the value of the primary receiver's lease fee. D* COULD extend their credit to also cover the tax, but almost nobody else does that, so D* has stopped doing that. I don't think the state cares who pays for the tax, but maybe some states have forbidden the provider from paying it. It could also be that D* paying the tax was a temporary measure to "ease the pain."

    Now when you cancel service, you do not get taxed on the full $6 for that last month, since D* will prorate the usage fee for that month.

    In NY, we only get taxed on the lease fees. We never got a credit for it.
     

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