Satellite Sales Tax?

[66mustang]

Just happen to look at the breakdown of my bill. My state(Tennessee) has a Satellite Programming Sales tax. Does every state have this? They got me for $5.53 on my last bill.

 

[Mr Tony]

I use to have sales tax on my bill when I had Directv. It was lower than the 6.875% MN charges

 

[66mustang]

I use to have sales tax on my bill when I had Directv. It was lower than the 6.875% MN charges

Guess everyone has to have their hand in the cookie jar these days.

 

[coolman302003]

Correct for TN, DBS is 8.25% state rate and no local
http://www.tn.gov/revenue/tntaxes/tvtelecom.shtml

 

[stardust3]

Hmm...didn't know that. I thought they got the full rate.

 

[coolman302003]

Looking closer at Recent Activity (in Directv acct online) and adding up the individual tax amounts and rates it appears that the Equipment Services (HD, DVR, Whole Home fees, Additional TVs @ $6) are taxed at state + local rates (usually between 8.50-9.75% depending on county/city) while the base package, premium channels, sports subscriptions (LP, ST, CI etc.) are taxed at the lower 8.25% rate.

At the end of the bill you have a total for Sales Tax line item then below that the TN Satellite Programming Sales Tax

 

[jcrandall]

Every state handles it different, Michigan for example does not charge sales tax on satellite, but does on a leased receiver fee (6% on each $6 fee). Funny enough, an additional (owned) receiver is not taxed.

So my bill typically has about $2 in sales tax for the receiver fees.

Other states have over 10% satellite tax adding $10 or more to some peoples bills.

 

[cinsu]

From what I understand Washington charges only on PPV programming, not 100% sure on this though. Oregon has 0 tax, sales or otherwise on satellite.

 

[bobvick]

Every state handles it different, Michigan for example does not charge sales tax on satellite, but does on a leased receiver fee (6% on each $6 fee). Funny enough, an additional (owned) receiver is not taxed.

So my bill typically has about $2 in sales tax for the receiver fees.

Other states have over 10% satellite tax adding $10 or more to some peoples bills.

I think Alabama does the same thing, taxes the fees, it is only 4% here though.

 

[JUCJ85]

I only get charged sales tax on the receivers, and Protection plan here in NY. My total taxes is like $3 dollars each month.

 

[Claude Greiner]

State Sales Tax Rates on DBS Programming



Arkansas............................................6.0%

Connecticut.......................................6.0%

Florida...............................................13.7%

Hawaii................................................4.0%

Iowa....................................................5.0%

Kansas.................................................5.3%

Kentucky............................................3.0%

Maine..................................................5.0%

Maryland (Pay Per View Only)..........5.0%

Minnesota............................................6.5%

Mississippi...........................................7.0%

Nebraska.............................................5.0%

New Mexico........................................5.0%

North Carolina.....................................7.0%

Ohio......................................................6.0%

Pennsylvania.........................................6.0%

Rhode Island.........................................7.0%

South Carolina......................................5.0%

South Dakota........................................4.0%

Tennessee..............................................8.25%

Texas.....................................................6.25%

Utah.......................................................6.25%

Vermont.................................................6.0%

West Virginia.........................................6.0%

Wisconson.............................................5.0%

Washington DC.....................................10.0%

 

[Claude Greiner]

If your state is not listed, then no tax

 

[dalyew]

Wow, we're paying almost 14% here in Florida????=-O

 

[harshness]

Wow, we're paying almost 14% here in Florida????=-O

It pays to look at your bill.

 

[medic-dan]

My tax in Massachusetts is 38 cents, that must be on the $6 receiver fee.

But, we also get a DIRECTV Massachusetts DBS Gross Revenue Tax which in my case is $4.20. The cable companies squawked a few years ago that they had to pay taxes that satellite didn't. This was the result.

I only have the HD receiver, no DVR.