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.
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.
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.
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.
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!
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.
Corosive, I saw nothing where Liz indicated that all the fees were valid.
She stated they where applicable, which meant they applied.
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.