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Liz, I Need Your Help Again (sigh) $24 in TAXES?

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monicakm
Senior

Liz, I Need Your Help Again (sigh) $24 in TAXES?

Liz, I have the 20GB plan for $50 for the first year.  My first bill is $74.  I called billing to find out why.  I was told $12 was for the FREE installation and the other $12 is in taxes (tele comm, state tele com, property, equipment state and equipment city taxes).  And this was with a $17 CREDIT 😮  I didn't have all this with my previous system.  My plan was $60 and my total billed to my cc every month was between $63 and $64.  Something isn't right.  Would you please look into it for me.  Thanks!

21 REPLIES 21

I did not think HughesNet charges any taxes or additional fees.  I have had service since 2008 and on a $69.99 plan.... bill is $69.99 every month (just a note I purchased my equipment).  My monthly fee has never went up in the 9 years with the service!

 

I expect the same with Gen5 (which I just signed up for the upgrade).  I expect to have no taxes or fees added and the price to be exactly what it is advertised now for the entire time with the service ($49.99 for 12 months then $69.99 after 12 months until I switch or cancel the service). 

Some states will require certain taxes to be paid, it's possible Monicakm is in one of those states where Hughes has to collect taxes.  Usually Hughes will only collect the tax once a year to pay the state and local governments that have such things in place.

GabeU
Distinguished Professor IV

I pay state and county taxes, both amounts being exactly the same, but they are very low.  

 

For Monicakm, it's also possible that, even though the installation itself was free, there are taxes to be paid on that installation.  My installation was free, yet I paid $7.92 in taxes on it.  

 

I won't have my first "regular" bill until next month, as the last one had all the prorated charges and the taxes for such on it.  

Corrosive, I'm in Texas.  I've been in Texas since the late 60s.  I've never been charged these taxes with my other systems.  I have tons of taxes with my cell phone service.  I fully expected 8.25% tax on my $49.99 plan for one year and then $69.99 + 8.25% there after.  No lease charges for the modem since I got it for free.  These details were repeated by me and the rep in Brownwood, TX many times.  Nothing about $20 MORE in "taxes" or any other taxes. 

C0RR0SIVE
Associate Professor

Monicakm,

Really, if you want to see exactly what is what...

1: Go to My Accont > My Bill at the top of the page
2: Click View Current Invoice OR Click View for a past invoice
bill1.PNG

 

3: Scroll down, then click View Site Details
bill2.PNG

4: This will pull up a list of all accounts you have, and will show exactly what is what.
bill3.PNG

 In mine you can see Hughesnet - Monthly Fee - Date Range - Amount
Below that, you see Property Tax Surcharge - Taxes - Date Range - Amount
Below that, you see Equipment Lease - Monthly Fee - Date Range - Amount
Below that, you see Lease Taxes - STATE (this is a state tax here!) - Amount

It's broken down a good bit, and you should be able to easily find out what is going where.

Hi Monica,

 

Thanks for posting. I'd suggest following C0RR0SIVE's instructions so you can see the breakdown of your taxes on your most recent invoice. I'm looking at it as well and I see there are various applicable taxes such as telecom, property, installation labor, and equipment.

 

-Liz

If you have a tech or billing question and need help, please start a new thread in the appropriate board. Unsolicited Private Messages may not get replies.

Slow performance? Click me!

I looked at all this Liz.  All this didn't apply with my other systems.  NONE of this was mentioned during the time I was upgrading.  $30 in TAXES?  That sounds like an expense that would have been mentioned.  Sounds to me like they are recuperating the cost of the modem that they offered me GIVE me.   I know you have the ability to listen to all the conversations.  I know you have the ability to check on $30 worth of TAXES! 

 

My plan is $50.  I had a $17 credit.  That makes my first month $33.  Add $2.72 for tax.  Add $8.25 for tax on FREE installation.  That's a total of $43.97 for my first bill.  NOT $74 unless you'd like me to believe I'll be charged THIRTY DOLLARS IN TAXES EACH MONTH.  I think we can all agree that's excessive and someone is most likely taking liberties with my acct for the rep offering to give me a modem for free.

C0RR0SIVE
Associate Professor

Base Plan - $49.99
Some kind of credit - $17.00
Telecom Tax -  $??.??
Property Taxes - $??.??
Labor and Equipment Taxes - $??.?? (This could get high, while the equipment was free to you, you are still required to pay the tax if Hughes treated it as a free purchase for equipment)
Some unknown 8.25% Tax - $??.??

Would be nice to know what you are seeing per each tax, but Liz has already indicated, the taxes on this months bill are valid.

BirdDog
Assistant Professor

State sales tax, required in many states even if service and equipment is provided free, on $400 total value (just and example) at 6% would be $24. Could be higher or lower depending on the value of the "free" items/services.

 

These are a one time charge and won't appear on future bills. I pay recurring  taxes on my service every month that my state requires. Would recommend contacting the state taxing agency if wanting the final word on what is taxable. Not paying anything for years may simply mean it slipped by the collectors for some reason. Maybe a case where better to not stir the pot.

 

Still seems like a pretty good deal to me if getting everything free except taxes.

BirdDog, if I have reoccuring taxes that are $40/month, NO, that's NOT a good deal 😮

 

On hold with a supervisor in billing.  She said my monthly bill should be $52....I thought it would have been a bit more than that.

I explained the whole sordid affair <g>, the special circumstances.  After reviewing my acct (I told her to take her time) and timeline, she said the refund was unused time on my previous plan ($19 credit) and then a charge of $22.58 for a prorated fee.  Bless her heart she tried to explain that to me at least 5 times.  I finally stopped her and said, "I appreciate you patiently trying to make me understand this but I'm just as confused as I was when we started.  Would you consider waiving that fee for me?"  She said yes and for my trouble, she has issued a $10 credit/month for 3 months 😮 🙂  I've got her name, case # and she said she would send an email outlining what we spoke about.  No mention of all these other taxes. 

GabeU
Distinguished Professor IV

Ah.  I should have paid a bit more attention.  There are always credits and prorated fees when upgrading.  All I saw was taxes and the discussion of such and why they were there.  

Not your fault Gabe.  No one mentioned credits and prorated fees to me either.  Well Liz mentioned a $17 credit but said she had no idea what it was for 😮  The only thing I was told about when I called earlier today was taxes, taxes and MORE taxes. 

Corosive, I saw nothing where Liz indicated that all the fees were valid.  She simply said she saw them.  I'll make some calls tomorrow.  I think I'll chat with billing, if their open, and see what someone else thinks about these charges.  I promise they won't say that same thing! Smiley Mad

C0RR0SIVE
Associate Professor

GabeU
Distinguished Professor IV


@monicakm wrote:

I looked at all this Liz.  All this didn't apply with my other systems.  NONE of this was mentioned during the time I was upgrading.  $30 in TAXES?  That sounds like an expense that would have been mentioned.  Sounds to me like they are recuperating the cost of the modem that they offered me GIVE me.   I know you have the ability to listen to all the conversations.  I know you have the ability to check on $30 worth of TAXES! 

 

My plan is $50.  I had a $17 credit.  That makes my first month $33.  Add $2.72 for tax.  Add $8.25 for tax on FREE installation.  That's a total of $43.97 for my first bill.  NOT $74 unless you'd like me to believe I'll be charged THIRTY DOLLARS IN TAXES EACH MONTH.  I think we can all agree that's excessive and someone is most likely taking liberties with my acct for the rep offering to give me a modem for free.


monicakm,

 

Chances are those taxes are both installation taxes and taxes on the equipment.  You got the equipment for free, but there still has to be taxes paid on that equipment, and as far as I know, legally speaking, the customer must pay those taxes.  The company cannot.  

 

This is one of the reasons why when you see a commercial for a company selling a product, and they say that they will pay the taxes for you, what they actually do is deduct the tax amount from the cost of the product, which some of them even allude to in the ads.  Again, legally speaking, the customer must pay the taxes.  

 

It would not at all suprise me if this is why you are seeing a tax amount like that.  

  

Gabe, I certainly understand that (altho NO one explained that to me) and over and over and OVER I repeated the total price per month that I was quoted.  And on one here (Liz) has mentioned that most of these charges are a one time charge.  There is no way I'd buy a service that cost me an additional $30+/MONTH in taxes.  My cell phone is "only" $12 tax/month.  I drove a hard bargain because I couldn't really justify the added cost (after a year) since I rarely go over my 10G/month plan. 

I'll get to the bottom of it by calling Corporate tomorrow.  Maybe someone there will explain things in more detail.

GabeU
Distinguished Professor IV

That large tax charge would be a one time thing, not recurring.   There should be a breakdown on the site to tell you exactly what the tax, or taxes, were for.  And if there are/were recurring taxes in your state, chances are they would be quite small.  Mine is twenty six cents.  

 

I don't know the breakdown, but if there were more taxes than just on the equipment, they would be on the cost of the installation.  YOU don't pay the cost of the installation, but the taxes may still need to be paid on it, and again, if they do need to be paid, the consumer would most likely pay it.  

 

Again, though, I'm 99.99% sure that the high tax amount is at least on the equipment, and possibly on the installation, too.  Either way, they would only be a one time thing, not monthly.   And, to be honest, the sales people may not even know at the time how much the taxes will be.  

OK Gabe, but it would be nice if someone took the time to explain that to me.  Hope to reach someone tomorrow who will.  If it wasn't for the $17 credit I had, my bill would have been $91 for a $50 plan where I'm not leasing nor did I buy the modem.  Almost double.  Yeah, that's not going to happen if these are recurring taxes.  The person I spoke with in billing indicated the only "one time" fee was the tax on free installation.   Me thinks they've figured out a way to get their money for the "free" modem.  I'm guessing the supervisor who gave the rep the go-ahead to offer the modem for free just did it to get a good report (via survey) right after the phone call was over.  I never got the call back the next day to finish the upgrade like I was told would happen.  Other reps told me the rep could and should have finished the upgrade right then and there.  They just took their chances that I wouldn't followup and pursue what they told me they'd do.  If all these taxes were a one time fee, I think Liz would have indicated that.  She looked at my bill.

GabeU
Distinguished Professor IV

@monicakm

 

When saying that the only fee would be a one time tax on the free installation, they probably meant everything that entailed, including the equipment, only they didn't think to break it down for you.  

 

It's like "The Price Is Right".  If you are lucky enough to win a new car, you are also unlucky in that you have to pay the taxes on it, even though it's free.  

 

I highly doubt it's an attempt to get money for the modem, but rather charging taxes that they are required to by law.  

 

Liz also alluded to the taxes on the equipment in her statement...."I'm looking at it as well and I see there are various applicable taxes such as telecom, property, installation labor, and equipment."  

  

You shouldn't stress yourself thinking that your taxes are going to be like this every month.  They won't be.  The sizeable taxes on installation, equipment and labor are a one time fee.  Once.  That's it.  The recurring monthly taxes you pay will probably be similar to what you were paying previously, though adjusted to whatever your new plan price is, if it's different.  My recurring taxes are lower than they were with Gen4 because my Gen5 price is lower.