Sales Tax on internet portion cell phone bill

[Dave J]

Are you charged sales tax on your cell phone internet access? I am, but not sure if it is correct to be charged. Just wondering what others see. I am with Consumer Cellular and it is billed separately, so much for minutes and so much for DATA.
They also charge me for my city franchise fee, but I'm pretty sure that is also wrong, and should only be on the voice portion. The sales tax is 8.85% and the Franchise fee is 5%. So for me it is an extra 13.85%.

 

[Whisper66]

I'm with AT&T in Houston area. My bill has City and State sales tax listed as general charges on the bill.

 

[Dave J]

Is your phone and data 1 rate or separate?Like 25 for voice 30 for Data? Does the tax equal your sales tax rate times your entire bill? Or just the phone (voice) part?

 

[hnzw_rui]

There's a whole bunch of franchise and excise taxes and fees but as far as I'm aware, the data portion does not get taxed in Los Angeles, CA. I'm pretty sure it's not supposed to be taxed anywhere.

https://en.wikipedia.org/wiki/Internet_Tax_Freedom_Act
https://en.wikipedia.org/wiki/Permanent_Internet_Tax_Freedom_Act

 

[Whisper66]

Is your phone and data 1 rate or separate?Like 25 for voice 30 for Data? Does the tax equal your sales tax rate times your entire bill? Or just the phone (voice) part?

Phone and data are package deal for us. Bill doesn't show the tax rate, just the amount. Just a package amount and bunch of goobledygoop fees and charges.
Example: on one of the phones:
The package cost is $65 for the package, the total cost is $72.39. Of this, the government fees and taxes are:
911 service = 0.50
911 Equalization charge = 0.06
City District Sales Tax = 0.11
City Sales Tax = 0.19
Texas State Sales Tax = 0.95
Texas State Sales Tax - Telecom = 1.79
The remaining charges are more surcharges and fees that make little to no sense unless you research them on the internet.

 

[Dave J]

Phone and data are package deal for us. Bill doesn't show the tax rate, just the amount. Just a package amount and bunch of goobledygoop fees and charges.
Example: on one of the phones:
The package cost is $65 for the package, the total cost is $72.39. Of this, the government fees and taxes are:
911 service = 0.50
911 Equalization charge = 0.06
City District Sales Tax = 0.11
City Sales Tax = 0.19
Texas State Sales Tax = 0.95
Texas State Sales Tax - Telecom = 1.79
The remaining charges are more surcharges and fees that make little to no sense unless you research them on the internet.

So you paid $3.04 sales tax on $65 or 4.68%.
When you shop in the same town you live, what is the sales tax rate you pay? If a lot higher, you are probability not taxed on the entire $65

 

[marko]

the government fees and taxes are:
911 service = 0.50
911 Equalization charge = 0.06
City District Sales Tax = 0.11
City Sales Tax = 0.19
Texas State Sales Tax = 0.95
Texas State Sales Tax - Telecom = 1.79
The remaining charges are more surcharges and fees that make little to no sense unless you research them on the internet.

One day I tallied the state/local tax on all my minor purchases for that day: Coffee/donuts, a few things at Home Depot, gas, newspaper, something at Target, lunch at a diner.

I was amazed at the 'daily tax'....about $9 a day ($3,000 a year) just on everyday stuff.

 

[Whisper66]

So you paid $3.04 sales tax on $65 or 4.68%.
When you shop in the same town you live, what is the sales tax rate you pay? If a lot higher, you are probability not taxed on the entire $65

Good point. Sales tax in texas is 6.25%, in my city is 8.25% so not taxed on entire amount.

 

[Dave J]

I'd love to find others who are not charged sales tax on internet, hopefully someone whose bill is a separate charge for talk and separate portion for Data.
I live in Missouri, but other states might help.

 

[Dave J]

I've been trading e-mails with the MO Dept of Revenue, and they said since it is called web data it is taxable, but if it was called internet access it would be tax free. Does that sound like BS to anyone besides me. There is a Fed law that bans taxes on internet access. This could be many million dollars in taxes we are all paying .

 

[hnzw_rui]

I've been trading e-mails with the MO Dept of Revenue, and they said since it is called web data it is taxable, but if it was called internet access it would be tax free. Does that sound like BS to anyone besides me. There is a Fed law that bans taxes on internet access. This could be many million dollars in taxes we are all paying .

That's BS.

For what it's worth, our family is on AT&T's Mobile Share Value Plan with the following breakdown:

$100 Base 20GB
$60 Smartphone Line Access Fee x4
$10 Tablet Line Access Fee (Data Only)

Going through my bill, we're only taxed on the $60 ($15*4) smartphone line access fee. Total government fees, surcharge and taxes is $2.82 per phone line. The $10 tablet line isn't taxed nor is the $100 20GB plan. Taxes are actually one thing that went down on the cellphone bill when we switched from the old style minutes-based plan to the data-based Mobile Share plan. On the old minutes plan, we were paying $5-15 per line on taxes.

 

[Dave J]

What state are you?

 

[hnzw_rui]

What state are you?

Post #4.

There's a whole bunch of franchise and excise taxes and fees but as far as I'm aware, the data portion does not get taxed in Los Angeles, CA. I'm pretty sure it's not supposed to be taxed anywhere.

https://en.wikipedia.org/wiki/Internet_Tax_Freedom_Act
https://en.wikipedia.org/wiki/Permanent_Internet_Tax_Freedom_Act

 

[Dave J]

Sorry,
I did not realize you had posted earlier.