New Sales tax discussion

Posts: 2257 · Posted: Mon May 01, 2006 12:47 pm Post subject:

VonageTPA -

Yeah, about the same here. My base charge for my old Cingular line was about $40, but it went to slightly over $50 with taxes, school fees, surcharges, add-on fees, regulatory fees, because-we-can reclamation charges, and the other entries in the half-page list. Wink

The local phone lines here are slightly worse than that, from what I understand. The taxes are ~$12-15 at least on a single phone line, per month.

But even if my $30 phone bill (Vonage + current fees) goes up another $5 a month, I'm still looking at about the same price as a basic, metered phone line would cost around here. And I get free long distance, voice mail, caller ID, and all the other nifty toys.

Posts: 83 · Posted: Mon May 01, 2006 1:03 pm Post subject:

NateHoy wrote:

Durp wrote:

Anyone know if the other Voip co's are also going to be charging a "sales tax" in unspecified States?

Either Vonage is being singled out because they are the largest (which means the other companies will have to follow suit shortly), or the other companies are just planning on eating the cost, which means their rates will have to go up to account for all that lost money soon.

.

Unless you sign up for a 1 or 2 yr deal,then you can hold the tax man and rate increases off for a while..

Posts: 171 · Posted: Mon May 01, 2006 1:26 pm Post subject:

Vonage is doing this because they are being forced to do this as are all other Voip providers. What I find amazing is the lack of information available on what states will be charging tax and at what rate. I have spent way too much time today searching the web for this information. There are many articles written back in Feb 2004, but nothing recently that would indicate cause for alarm.

I wonder why Vonage started this ground swell now? WHat is it that made them post their comments about starting on or about May 1st????

Posts: 63 · Full Forum Member Joined: Jan 14, 2005 Posts: 63

VonageTPA wrote:

Not sure about your area, but here (Florida) it's ~20% tax on cell phones.

I am sure it is comparable here, but my point is, we have the cell phones anyway. We have grown accustomed to having the cells with us all the time, so we are not going to get rid of them. I have struggled with the "Why do I need a hard wired phone at home" question for a long time. Vonage service has been a good compromise. A lot of features, great price, and the service works well for me. No complaints about Vonage here! Dancing

My only complaint is our government wanting to get their greedy little fingers into my wallet every chance they get Evil or Very Mad

. My only option is to quit "consuming" where I can, when their price gets too high for me.

...so, again, if taxes and "service fees" (more taxes) show up on my Vonage bill, that approach 50% Jaw Drop

of the total Vonage bill (as they did with Qwest...) I will vote with my feet! Not talking

Posts: 56 · Full Forum Member Joined: Mar 15, 2006 Posts: 56

I know its not vonage's fault... but im kinda pissed at the govt because its just another way they get our hard earned $$ from us.

Posts: 63 · Full Forum Member Joined: Jan 14, 2005 Posts: 63

I just e-mailed Vonage using the contact part of my dashboard...

I got the following automated response...

Quote:

Thank you for contacting Customer Care.

On or about May 1st, Vonage will begin charging taxes to Vonage
customers in various states across the US. Vonage will begin with the
21 states listed below (in addition to New Jersey). State and local
governments may assess taxes, surcharges and/or fees on use of Vonage
service. These charges may be a flat fee or a percentage of Vonage
charges and may change from time to time without notice. These
charges are based on the rates applicable to the address provided to
us.

Arkansas(AR), Colorado(CO), Connecticut(CT), Iowa(IA),Indiana (IN),
Kansas(KS), Kentucky(KY), Michigan(MI), Minnesota(MN), North Carolina
(NC), North Dakota(ND), Nebraska(NE), Nevada(NV), Ohio(OH), Oklahoma
(OK), South Carolina(SC), South Dakota(SD), Tennessee(TN), Utah(UT),
West Virginia(WV).

Posts: 171 · Posted: Mon May 01, 2006 2:18 pm Post subject:

mbkerk wrote:

I just e-mailed Vonage using the contact part of my dashboard...

I got the following automated response...

Quote:

Thank you for contacting Customer Care.

On or about May 1st, Vonage will begin charging taxes to Vonage
customers in various states across the US. Vonage will begin with the
21 states listed below (in addition to New Jersey). State and local
governments may assess taxes, surcharges and/or fees on use of Vonage
service. These charges may be a flat fee or a percentage of Vonage
charges and may change from time to time without notice. These
charges are based on the rates applicable to the address provided to
us.

Arkansas(AR), Colorado(CO), Connecticut(CT), Iowa(IA),Indiana (IN),
Kansas(KS), Kentucky(KY), Michigan(MI), Minnesota(MN), North Carolina
(NC), North Dakota(ND), Nebraska(NE), Nevada(NV), Ohio(OH), Oklahoma
(OK), South Carolina(SC), South Dakota(SD), Tennessee(TN), Utah(UT),
West Virginia(WV).

Did anyone notice that it's actually 21 states total. There are 20 states listed "below" plus New Jersey would make 21 total. I hope their ability to calculate taxes is better their their ability to add. Sprint

Posts: 2257 · Posted: Mon May 01, 2006 2:20 pm Post subject:

mbkerk -

Thanks for posting that.

Looks like Maine sneaks under the radar, for at least a little while longer. But, all good things must come to an end and I know (relatively) tax-free Voip is one of them.

Heck, I have to pay Maine sales tax on stuff I buy out of state, so I bet Maine will find a way to add taxes to Voip soon. That's why we call it "Taxationland". LOL.

Posts: 2257 · Posted: Mon May 01, 2006 2:22 pm Post subject:

booma wrote:

Did anyone notice that it's actually 21 states total. There are 20 states listed "below" plus New Jersey would make 21 total. I hope their ability to calculate taxes is better their their ability to add. Sprint

Yes, I noticed that, but I was grateful that someone would actually list them out, and I figured it was a matter of poor wording (21 states, including the ones listed below and Joizey, where they have already had to charge sales tax anyway).

Posts: 476 · Posted: Mon May 01, 2006 3:15 pm Post subject:

NateHoy wrote:

Heck, I have to pay Maine sales tax on stuff I buy out of state, so I bet Maine will find a way to add taxes to Voip soon. That's why we call it "Taxationland". LOL.

Isn't this the case in all states with sales tax? Here in Washington they call it "use tax". You're supposed to pay it on anything you buy out of state as well as anything you buy in state where the seller is not licensed to collect sales tax (personal auto sales, garage sales, etc).