I

New Member

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2 Messages

Fri, Sep 17, 2021 7:01 PM

Taxes on Internet Plans

I'm considering switching to AT&T Fiber because I just found out that there is a $13 additional tax included in my current internet service provider's monthly charges due to a voice line that is included in the internet package that I personally do not need. This provider does not have any plans without a voice line and there was no initial mention of the high tax associated with one. I'm considering the 300 Mbps AT&T Fiber plan instead, which is listed as $35 for the service and an additional $10 for equipment. I only need the Internet service, so I'm hoping there are no additional services with associated costs or taxes in this plan. I see that the total cost is listed as $45 plus taxes and surcharges. Can I ask beforehand around how high these taxes and surcharges will be and if they are solely associated with my Internet service and no additional services I did not need in the first place? It would be nice to have an accurate estimate of what a monthly bill will look like. Thanks in advance!

ACE - Expert

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22.5K Messages

Il y a 9 m

Beyond Federal taxes and fees, the amount(s) are specific to your location.  They can be State, County & Municipal (city) taxes.

The taxes I pay in (Dallas) Texas can be vastly higher (or lower) than what someone pays Milwaukee or Atlanta.

SoloTX

ACE - New Member

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354 Messages

Il y a 9 m

Taxes are going to be based on locality, but I pay nothing in taxes where I am in TX. Just a $0.26 State Cost Recovery fee. You might be better off asking neighbors that have AT&T internet.

ACE - Expert

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22.5K Messages

Il y a 9 m

Lucky you....TPTB here in Dallas County add a tax or a fee every chance they get.  🤬

browndk26

ACE - Professor

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4.6K Messages

Il y a 9 m

Kentucky has no taxes on internet services. Many other states don’t either. Best to call state taxing authorities. 

What state are you in?

New Member

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2 Messages

Il y a 9 m

I'm in California! I do understand taxes vary by region, but I wanted to confirm that what I was being taxed on would be solely for the Internet service only. The problem I had with my $13 tax was that it was from the voice line included in the plan that I didn't need in the first place. I just wanted to check that the 300 Mbps plan for AT&T Fiber doesn't include additional services that have associated taxes and services I'm not told about initially.

ATTHelp

Community Support

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191.9K Messages

Il y a 9 m

Hey @irusu, we understand that you have questions related to taxes on your bill. We're here to help.

 

As the Aces stated that would vary by state laws for taxes. The best option would be to see does your state tax for internet services. The link below will explain some of the charges you may notice on your bill.

 

Please let us know if that helps.

 

Charles, AT&T Community Specialist

my thoughts

Employee

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19.1K Messages

Il y a 9 m

While the internet should not be taxable, the gateway equipment fee might be.

If your tax rate is 10%, the equipment fee is $10 results in $1 sales tax. 

In my state, fees and labor, such as $99 installation are taxable... your state may vary.

I would suspect taxes will be similar to what your current provider is charging as tax rate is determined by government. 

New Member

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1 Message

Il y a 7 m

Every business has overhead costs that they factor into their product in order to make a profit. The recovery fee that AT&T charges and claims they have no control over, that it is a tax by the government is just another cost of doing business by these companies and they already have it figured into their bottom line yet AT&T likes to take more advantage and recoup that cost twice and blame the excess on someone else (in this case the government). My AT&T bill was designed so that the majority of fess and taxes were in the phone section of my bill (had VoIP which is taxable) with only that little 23 cent "recovery fee" - bless their hearts they just can't help themselves no matter how small if they are allowed to collect it even after already having it factored in at many times over, they just gotta go for it lol). So just now dropped my phone and of course with their bundled scams the internet shot up. I had already been quoted a price on it the week before though by one employee but after I did remove the phone, I called back to get it set in and was told no, the best price I could get was 10.00 higher than that. Oh, the joys of dealing with AT&T. So after considerable time I did get the price I was told earlier and  never even thought to ask about taxes since it was internet only so figured they would just tack their little 23 cents on. No, looked at the confirmation email this morning and there is also a 4.55 tax and fees. I hadn't thought about the equip. but thanks to employee post above I see that. So yes they do charge 10.00 for equip. fees so I'm in Texas with 6% state tax. I live outside city limits but even with city tax it is 8.25% so go figure 4.55 tax on 10.00. Got to love that AT&T! I'm just treading water until I get my internet switched which is in the workings and then so long AT&T. I will have to say it's been fun but not real fun.

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