Has anyone found out why they charge sales tax?

coopertwist

Well-Known SatelliteGuys Member
Original poster
Mar 28, 2004
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I was just wondering if anyone here has found out the reason why they charge sales tax?

Thanks.
 
Depends which state you are in. Some states have sales tax on satellite programming (like TX where I live).
 
I get sales tax on my E* bill, had it on my cable bill prior to E*, and expect to have it on V*. If the state requires it, by law, they have to.

Maybe I'm not following you here...
 
Well, there's this organization called Government. They pass laws that levy taxes on goods and some services. It can vary by state. For example, if you lived in New Mexico, you would pay sales tax for some fees that banks charge. In some states, there is no state income tax--but watch out when you pay your property tax. Some states have chosen to tax satellite service, and that's why it is on your bill.

For a thoroughly frustrating experience, try to decipher the fees and taxes on your next phone bill. That's a good reason why there is no such thing as www.phoneguys.us. Don't try the link because it won't work.
 
I'm in California. I currently have Dish Network. And there is no tax on my bills. But I ordered Voom and there will be tax. It's bizarre. I think it has something to do with Voom being owned by the cable company, Cablevision.
 
I live in Chicago and I have D* and no sales tax. I also have Comcast and do not pay sales tax but pay city fran fee and fcc and city amusement fee. I just thought it was strange and when I contact a V* CRS (I know) they said it was a city, state and county sales tax.
 
Vurbano and I live in a commonwealth state, so we get hit with taxes. Also I think sales taxes apply in some states because your leasing the equipment.
 
I do lease my d* 811 but I dont pay sales tax or any other tax on the service. When I looked at my agreement with dish it states:

Offer Terms
The Digital Home Advantage is for new, first-time DISH Network residential households only. Offer is available from DISH Network in the continental United States between 2/01/04 and 6/30/04. Number of channels may decline. Local and state sales taxes may apply. Where applicable, monthly receiver equipment rental fees and programming are taxed separately. Requires a minimum purchase of America's Top 60 or DISH Latino programming package or service will be deactivated. You must provide a Social Security Number and valid major credit card. If a Social Security Number is not provided, you must provide the last four digits of your Social Security Number and pay a $49.99 non-refundable fee. Participation is subject to credit approval. Social Security Numbers are used to obtain credit scores and will not be released to third parties except for verification and collection purposes. The Digital Home Advantage includes a satellite TV system with an eligible configuration of up to 4 receivers, choice of Qualifying Programming and Standard Professional Installation.

I know every state is looking for cash but when I checked with Illinois and Chicago taxing author. they said they do not collect for sat services or lease fees of personal property for outside companies. So I emailed V* they claim to get back to me on this issue. Who knows...I just wonder if everyone has tax charged on there bills.
 
I am the former a former operations director for the PA Dept of Revenue and can answer that. Because Voom is doing regular business in your state it is subject to a thing called Nexus. It simple means that that it is doing such regular business in the state it is if they had a permanent location. In all such states, Sales Tax is charged. If you order on-line from other Vendors such as Wal-Mart, JC Penney etc. You will also be charged sales tax. If your local state charges sales tax on such services such as cable etc, VOOM has to charge and remit the sales tax.
 
jimmykce1 said:
Vurbano and I live in a commonwealth state, so we get hit with taxes. Also I think sales taxes apply in some states because your leasing the equipment.


There is no difference between a commonwealth state and any other. Several states use the term, MA, PA nad VA come to mind. But trust me ALL 50 states have taxes.
 
Technically a commonwealth is not really a state. I found that out when I went to college in PA.
A commonwealth has some weird laws.


But then again I am living in CT now ant the laws are still very weird. CT gets taxed twice on satellite service.
 
Well Wal-Mart and those have stores here in Illinois so they would charge sales tax. Most important Voom or Rainbow Media DBS, LLC is not remitting any tax collected. I found that out by the State and City today. Also, Voom said they were looking into this because the Finance Department at Rainbow said they are not remitting or should be collecting. They said they will follow up with me next week so they could get with their outside firm that set up all the tax tables in their billing system and give me answer. Voom said it is showing the tax for the programming not the lease. Even when I bought my unit outright I did not pay any sales taxes on it because I got it from the 800 #. Now, I am responsible for remitting that tax to my state for that purchase.
 
My VOOM bill doesn't have sales tax on it, but it has a Franchise Fee similar to cable and is a bit less than if it was sales tax (acutally $1.50 less).
 
In Oklahoma, satellite customers are not charged sales tax on satellite programming. They are, however, charged tax on the lease portion of the bill ($5 per receiver on DHA). I don't know why Voom would be any different. It seems like it would be the same as if you had E* or D*, programming shouldn't be taxed in states that do only charge tax on tangible property.
 
I got a phone call back on Friday from Rainbow Media legal department just giving me a heads up that the issue is not forgotten. I was told that the reason everyone gets sales tax on the bills is because the have not registered with all the states for remitting tax. That explains why Illinois has no record or Rainbow DBS LLC. He also said that this is a large can of worms that is open because the finance department said that once they are registered with the states and the local municipalities they will owe huge fines and penalties on the back taxed from 11/03. If your state or local municipality does not require tax to be collected he stated that it would be refunded. He also said that he would keep me posted on where they are on my state. I will keep you posted.
 
Geronimo said:
There is no difference between a commonwealth state and any other. Several states use the term, MA, PA nad VA come to mind. But trust me ALL 50 states have taxes.
I had no tax on my D* bill. I just dont think V* knows the laws in all states.
 
coopertwist said:
I got a phone call back on Friday from Rainbow Media legal department just giving me a heads up that the issue is not forgotten. I was told that the reason everyone gets sales tax on the bills is because the have not registered with all the states for remitting tax. That explains why Illinois has no record or Rainbow DBS LLC. He also said that this is a large can of worms that is open because the finance department said that once they are registered with the states and the local municipalities they will owe huge fines and penalties on the back taxed from 11/03. If your state or local municipality does not require tax to be collected he stated that it would be refunded. He also said that he would keep me posted on where they are on my state. I will keep you posted.
I thought it was something like that
 

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