Taxes On Satellite Service In Colorado?

[Carl B]

OK guys, I just got off the phone with Dish regarding my current billing. I noted that for the first time in nine years with Dish that I'm being charged $5.37/month in County, City, District, and State taxes. They tell me that I should have been charged that for the past 9 years.

I thought satellite was exempt from those taxes; its one of the reasons satellite is cheaper than cable. Am I wrong here? Is everyone else paying taxes on their satellite bills?

Or does this have something to do with the fact that my basic package just changed from America's Top 200 (when I owned both receivers) to Digital Home Advantage (where I now lease both receivers).

Comments?

 

[tsduke]

Sat's don't have franchise fees, but still have to charge regular sales tax.

 

[Ramy]

In Kentucky we have had it for about a year now.

 

[tsduke]

In Kentucky we have had it for about a year now.

Sales tax or satellite tax?

 

[Ramy]

Sales tax.


Sales Tax 2.88

KY Gross Revenues Reimbursement Tax 1.82

 

[jerryez]

I pay $10 per month on a $90 Dish bill in taxes and county Franchise fees. I pay a county franchise fee on Electicity, water, gas, garbage, cable and Satelite or any other services that I might get here in Florida. The county also adds a $75 fire protection fee on my property taxes for the volunteer fire dept. Man, talk about getting screwed.

 

[Pepper]

Remind us again how much you pay in state Income tax?

 

[rustamust]

$1.42 total tax in Colo. Springs, Co according to my statement on line as of today.

 

[Carl B]

$1.42 total tax in Colo. Springs, Co according to my statement on line as of today.

Do you have leased receivers? I've heard that Dish applies the sales/use tax in CO to the leased cost of receivers, but not to the programming package. In my case, they seem to taxing the programming as well since the total tax at 8.06% is over $5.

 

[rustamust]

I lease a 622, 211 and 510.

 

[Carl B]

I lease a 622, 211 and 510.

That makes sense at about a 7% or so tax rate. Do you own any receivers as well?

And one more question. In your on-line bill, is your programming charge listed as America's Top XXX or Digital Home Advantage XXX.

Thanks,

Carl B.

 

[kvnfl]

I pay $10 per month on a $90 Dish bill in taxes and county Franchise fees. I pay a county franchise fee on Electicity, water, gas, garbage, cable and Satelite or any other services that I might get here in Florida. The county also adds a $75 fire protection fee on my property taxes for the volunteer fire dept. Man, talk about getting screwed.

It is odd that Dish adds over $10 to my bill in FL. Yet, Direc did not add tax, period. Something is not right. Fifteen more months of down rezzed non HD service and I am out of here. Might miss the DVR. Do miss VOOM. Will not miss Dish.

 

[UGAChance]

My bill this month had no taxes in Arapahoe County, CO, but I only pay for service.

 

[Carl B]

So I finally got the sales tax issue straightened out with Dish. My local sales tax rate is 8.06% (Arvada, CO) and I now have two leased HD receivers from Dish. Leases are taxes as sales in Colorado so sales tax applies. Lease rates for HD receivers are $7/month each (one is included in my AT200 package) so my monthly sales tax charge is now $1.12. I can live with that, but I'll remember it in November.

The initial $5.37 sales tax charge included some sales tax on my upgraded equipment. Even if Dish waives the upgrade cost to the subscriber, as they did with me, sales tax is still due and paid by the subscriber. I'll also remember that in November.

So for my purposes, this thread is closed.

 

[kvnfl]

Directv never charged sales tax. Dish does.

 

[Carl B]

Directv never charged sales tax. Dish does.

It depends on your state tax laws. I confirmed with the Colorado Department of Revenue that Dish is taxing my leases appropriately. If DirecTV doesn't collect sales tax on leased equipment in Colorado, they still owe the tax to the state, and it is nice of them to pick up the tab. Apparently Dish didn't collect the sales tax either for awhile until the Dept. of Revenue audited them and asked for their money. It's not the DBS provider that is at fault here, it is greedy governments looking to squeeze more and more money out of the consumer to cover their wasteful spending. Keep that in mind in November!

 

[AdamGott]

The state sales tax laws don't exactly mesh very well with federal laws and supreme court rulings right now so I wouldn't take anything that any state tells you as the absolute truth! According to the Supreme Court a company has to have a physical presence in a state before a state can order them to collect sales taxes. Each state has interpreted this a different way, in fact New York has recently passed a law that attempts to circumvent this by saying that Amazon affiliates based in New York now give Amazon a physical presence in New York.

I think that in all cases so far the Supreme Court ruling has prevailed when push came to shove but some companies just collect in every state anyway. Dish and BMG Music Service are two that I know of but there are probably many others. I am pretty sure that neither has a physical presence in my state (Idaho) but there really is nothing I can do about it short of not patronize them.

Based on the new law in New York, I guess one could argue that DISH has profit sharing agreements with tv stations in every state and thus now has a physical presence (?). Who knows what will happen? It's definitely a big mess right now and will only get worse as time goes on.