So, a friend of mine goes to "buy", or "lease" or "get" the HR10-250 DirecTV DVR/TiVo for $499 from the local big box. But, they tell him, there will be $41.17 sales tax.
So, he is a tax lawyer, and he reads the D* contract "service agreement" telling him that at all times the DVR remains the property of Direct TV, but does not really specify that the "charge" he is paying is for renting, or leasing it, that charge comes later payable monthly. The potentially taxable "service" he is buying is the programming and transmission, so there is really no taxed sale of a service. So, he asks them, why are they charging tax-there is no sale or purchase, and, essentially, he says, he is being asked to pay for "AIR", or, put another way, or NOTHING AT ALL! If it's a "deposit" it certainly is not subject to sales tax.
Beautiful. Needless to say, the store manager was flummoxed. My buddy did not "get" his PVR, either.
One of the few times you can really love a lawyer. So, if we pay $499 or $100 or some other amount to "get" a piece of D* equipment under the new program, what are we paying for? What is the "cost" called? What are you "buying?"
So, he is a tax lawyer, and he reads the D* contract "service agreement" telling him that at all times the DVR remains the property of Direct TV, but does not really specify that the "charge" he is paying is for renting, or leasing it, that charge comes later payable monthly. The potentially taxable "service" he is buying is the programming and transmission, so there is really no taxed sale of a service. So, he asks them, why are they charging tax-there is no sale or purchase, and, essentially, he says, he is being asked to pay for "AIR", or, put another way, or NOTHING AT ALL! If it's a "deposit" it certainly is not subject to sales tax.
Beautiful. Needless to say, the store manager was flummoxed. My buddy did not "get" his PVR, either.
One of the few times you can really love a lawyer. So, if we pay $499 or $100 or some other amount to "get" a piece of D* equipment under the new program, what are we paying for? What is the "cost" called? What are you "buying?"