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sepierson's avatar
sepierson
3 months ago

Property tax recovery charge

There is a property tax recovery charge on my hugesnet bill. We already pay sales tax and tax on leased equipment. We aren't buying or leasing property from Hugesnet, we're buying or leasing equipment, there should not be a property tax charge. That's double taxation at the very least because we're already paying sales tax and equipment lease taxes. The property tax recovery charge/tax is not a tax required by the government for Internet providers. I'd like to know where Hughesnet gets the idea that it is. I can find no information, no law or mandate, relating to internet providers being allowed or required to charge consumers property tax.

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  • maratsade's avatar
    maratsade
    Distinguished Professor IV
    3 months ago

    I understand you think they shouldn't be applying this charge. You may want to call the 800 number and discuss the issue with the accounts department.  You may also want to read the subscriber agreement, located at https://legal.hughesnet.com/ , which includes instructions for a grievance procedure.   Additionally, you could go to the site of a government agency that deals with communications and see if they have information that might be useful to you. 

  • maratsade's avatar
    maratsade
    Distinguished Professor IV
    3 months ago

    The Carrier Property Tax (also sometimes called the Property Tax Allocation) is applied to interstate and international services, fixed monthly charges, and variable usage fees. Providers such as HN, Verizon, etc.,  add an allocation charge to customers' monthly bills in order to recover a portion of the property taxes it must pay to provide telecommunications services to businesses and homes around the country.