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Curious as to what rate people pay in taxes for DirecTv.

Discussion in 'DIRECTV General Discussion' started by ejjames, Nov 23, 2009.

  1. rudeney

    rudeney Hall Of Fame

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    May 28, 2007
    I pay state sales tax of 4% (no local taxes) only on the lease/mirror fees. It's calculated before the primary receiver lease fee is credited back. So, on 6 receivers, I pay 4% on $30 or $1.20. I know that sounds cheap, but don't worry - they make it up on out 9% sales tax that we pay on everything else we buy.
     
  2. drpjr

    drpjr Icon

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    Nov 23, 2007
    Sakatomatoes...
    ??? All of my boxes are owned. I want my .44c back.;):rolleyes:
     
  3. Montezuma58

    Montezuma58 AllStar

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    May 24, 2004
    This is making me more confused. If my taxes were calculated the same way I would be paying $1 instead of $0.43. The 43¢ just does not correspond with anything on my bill using either the state, county, or city (which I'm not supposed to be charged anyways) sales taxes. Oh, well I guess I'll just let it slide I would hate to question it then end up having my bill go up.
     
  4. Rich

    Rich DBSTalk Club DBSTalk Club

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    Piscataway, NJ
    Shhhh.

    Rich
     
  5. cartrivision

    cartrivision Hall Of Fame

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    Jul 25, 2007
    I very clearly advised to adjust the state withholding, not the fed withholding, (even though I referenced the incorrect form number).
     
  6. rudeney

    rudeney Hall Of Fame

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    May 28, 2007
    Remember that Alabama only taxes payments for tangible goods (lease fees included). Services are not taxed unless there is a specific tax for that type of service like there is for many utilities (cable, phone, gas, power, etc.)

    Although they probably should, it appears that D* does not collect local county/city taxes. I can understand why they don't because it can be very confusing, especially where leases are concerned. For example, the municipality I live in has a higher tax on leased goods than their sales tax rate for "purchases". For D* to be able to figure all this out for the hundreds of thousands of different taxing authorities all over the country would be very difficult. Also, like many companies, they don't bother to deal with the local tax authority unless they have a business presence there. In my case, our installer's offices are in the next county over.
     
  7. Montezuma58

    Montezuma58 AllStar

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    May 24, 2004
    I looked back where I ordered a remote and they charged me 8.5% sales tax (it should have been 5.5% if they charged the correct tax). 8.5% of $5 works out to the $0.43 that shows on my monthly bill. I have 2 leased receivers and 3 owned receivers on my account. It looks like they are trying to collect taxes for the city of Huntsville or city of Madison (both are currently 8% although Madison recently voted to raise theirs to 8.5% but that's not effective yet). Since my mailing address is Madison yet I'm a county resident I often incorrectly get charged the city of Madison rate. DTv does have a call center in Huntsville. I suspect I'm getting slightly undercharged overall so I'm not going to complain.
     
  8. rudeney

    rudeney Hall Of Fame

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    May 28, 2007
    It does sound like they are charging you the local taxes, so they must have a business presence there. An interesting thing about distant companies that collect sales tax is that they often do not remit them to the local authorities, and when they do, they sometimes remit it to the wrong ones. For example, I live in the city of Helena. Whenever I lease a car, I get to pay a higher than normal tax (4.875%) because of the higher tax in Helena. However, I once contacted the city and discovered that very few leasing companies actually remit the tax to them. They've never received a dime for Toyota/Lexus, but there are obviously leases for them there.

    Another issue is that many residents around here live in the city of Hoover, but their ZIP codes always pull up as "Birmingham", so taxes are often remitted to the wrong city. In fact, there was a lawsuit over this a while back where Hoover tried to get Birmingham to pay them back some of that. It turned ugly and there was actually discussion of forcing their residents to pay the tax, even though they had already paid it to the retailers. Apparently, paying the tax is ultimately the consumer's responsibility even though the retailers collect it.
     

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