CA Sales Tax just added? Anyone else?

[sirlurkalot]

I've been a Dish Customer for about 9 years now, and on this months bill I notice (for the first time ever!) that there a $0.36 State/Local tax charge.

Looking further there's a statement on the details section of the bill that states (edited for clarity):

"A taxable equipment rental fee of $7 ... for the first receiver activated is included in your .. programming package price. The tax attributable to this fee has been included in the Taxes section above".

I called Dish to find out why and ended (after going up the chain) talking to Jordan in the executive office.

She stated (but could not back this up with detail) that she had a "chart" that states that CA charges 6% tax on "fees" but not on "programming".

Now I can understand a tax on a lease (normal practice), but, I OWN all my equipment and never rented or leased anything from Dish (I even bought my own LNB's and physical Dish.

Jordan pointed out that I should have paid tax for the last 9 years and that in CA all "fees" are taxable. I find this hard to believe and if true the bill is still wrong as I have three receivers and have an additional $12 in "fees" that should also be "taxable", but she had no answer for this either...

Anyone else in CA who OWNs their equipment see this on their account?
Is Dish blowing smoke again?

I know it's not a lot, but there's a principle here and ~1M CA subs (factoring maybe 1% owning their equipment) x 0.36 is a good chunk of change per month !!

For reference here's the breakdown.

Addl receiver Access fee        $ 7.00
2 premium packages              $20.00 
DishDVR Advantage               $49.99 
Addl Receiver Access fee        $ 5.00
subtotal                        $81.99

Taxes                           $ 0.36

Total                           $82.35

Thoughts?

 

[stevegd007]

Well for whats its worth. I am from CA and I too have this "new" fee on my bill for the first time. Welcome to the GREAT STATE of California and its Democrat controled fees (i.e. Taxes). This is not Dishes problem, but us users from California and our State Government and its fees and taxes. Wait till the current group of legistorators get through with the current budget problems and then be really peppered will all kinds and types of fees and taxes. It will never stop, until us taxpayers have a modern "BOSTON TEA PARTY".

 

[gbjbany]

i have a bill from 2007 with 44 cents of CA sales tax on it, so dont think it's new.

 

[sirlurkalot]

stevegd007 - I wondered that too... and spent some time checking the Board of Equalization website... I can find NO reference to taxation of DBS services, nor any State Bill adding tax either.

Do you have a link, or was that just a hunch?

The timing does make sense though as this would be the first of the '09 billings.

gbjbany - do you own or lease? was this as a result of a programming change...was it a one off event?

 

[markfp-1]

I think we'll see a lot of that happening around the country. Here in New York State the governor is proposing an 8% tax on cable and satellite. It would have to pass the state legislature, but hasn't yet. I wouldn't be surprised if it will sometime. Hell, he's trying tax just about everything except breathing and sex and if he can figure out how to do it I'm sure he would.

 

[grb]

I have been charged CA tax for years. Currently it is $.58 on the $7.00 leased receiver fee.

 

[DishSubLA]

The CA "tax' has been on my bill in the past starting SEVERAL years ago. Nothing New. And yes, for some amount of 36 cents there abouts.

 

[HDRoberts]

stevegd007 - I wondered that too... and spent some time checking the Board of Equalization website... I can find NO reference to taxation of DBS services, nor any State Bill adding tax either.

That's because it's not a tax on DBS, it's a tax on lease fees.

Dish is keeping none of this. Blame your state. And maybe cable. The cable industry has quite a powerful lobby. It may very well have been them that pointed out Dish's tax oversight.

 

[thowe21]

Tax on my Dish bill in Calif for a few years as well.

 

[stevegd007]

I think HDroberts is correct. An yea this was just a hunch on my part.

But I noticed this new fee for the first time on my December billing cause by normal Dish fees (bill) jump up a small amount so I too looked and saw these new fees. These fees are bigger than whats been seen on my bill during older billing cycles.

 

[sirlurkalot]

HDRoberts - I can understand that tax is due on a leased set of equipment (that's normal practice)... my point is that I OWN my equipment - there is no lease ... ergo.. no tax due.

Update - I just got off the phone with a "tax opinion expert" @ the CA Board of Equalization.

He said that there is NO tax due on programming fees.
There is tax due on LEASED equipment fees.
Any equipment OWNED by a customer is NOT subject to tax in CA.

Back to the executive office we go........

 

[RandallA]

I have been charged CA tax for years. Currently it is $.58 on the $7.00 leased receiver fee.

Same here. The $.58 cents have been there for a while so I don't know why some people are seeing it for the first time.

 

[tomcrown1]

Thiss not a new fee the tax has always been their

 

[DodgerKing]

Well for whats its worth. I am from CA and I too have this "new" fee on my bill for the first time. Welcome to the GREAT STATE of California and its Democrat controled fees (i.e. Taxes). This is not Dishes problem, but us users from California and our State Government and its fees and taxes. Wait till the current group of legistorators get through with the current budget problems and then be really peppered will all kinds and types of fees and taxes. It will never stop, until us taxpayers have a modern "BOSTON TEA PARTY".

I have Direct and here is CA they just added the same tax to my bill as well. It is a lease tax and it only applies the the additional receiver(s) since the first one does not have a lease fee to tax.

 

[NoBoB]

I wonder if the discrepancy between those who've always had the taxes and those of us just noticing it now is due to ownership status. I own mine, and that tax is definitely new this month. It's 77 cents for me but I have two 722's (or Ultra Awesome Double Magic Super Whizbangs or whatever they're going to be called).

I think I'll bug me some poor CSR

 

[NoBoB]

To follow up on this tax issue:

I was told by CS that the tax is new on the system fees. The lease tax has been there quite a while. Since I'm charged the extra receiver fee and the DVR fee on the 2nd 722, the tax is now applied to those charges.

Of course, I have no way to verify any of that.

The People's Republic of California strikes again.

 

[Yes616]

FWIW.. I am in New York State and never had taxes applied to any of my regular charges like programming and even lease fees.

I did get charged sales taxes when I upgraded to the 722 last January and also last month when I ordered the new 21.0 remote control. Thats about it here.

 

[jporum]

To follow up on this tax issue:

I was told by CS that the tax is new on the system fees. The lease tax has been there quite a while. Since I'm charged the extra receiver fee and the DVR fee on the 2nd 722, the tax is now applied to those charges.

Of course, I have no way to verify any of that.

The People's Republic of California strikes again.

What are considered "system fees"? I had been paying $0.58 in tax which is what I would expect on my $7 DVR lease fee with my 8.25% tax rate (Santa Clara County, California). However, last month it went to $0.86 and this month it is $0.96. Something has changed.

 

[Laddyboy]

In FL I'm paying $8.02 in taxes on a $66 bill. Count yourself lucky you get to pay so little.

 

[Pepper]

Just noticed, here in AL, an additional 42 cents on my 79.99 bill. That's either 0.525% on the programming or 6% of a nonexistent $7 lease fee on my single (owned) receiver. I wonder which, no details in the fine print that I can find.

It costs a $200 administrative fee to get the state to make a ruling, plus the documentation of all the details which I don't have anyway.