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How Xfinity Mobile calculates sales tax

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How Xfinity Mobile calculates sales tax

 

How Xfinity Mobile calculates sales taxes can be confusing. 

 

Here's an explanation for anyone who might be interested.

 

XM has a web page that discusses taxes here:

https://www.xfinity.com/mobile/support/article/221702048/what-taxes-am-i-being-charged-for

 

The page says:

Taxes are based on the value of the line, not usage, so even if you're paying By the Gig and use no data, you will still be taxed for the line.

 

But the page does not explain these points:

 

— Sales tax is charged on the “value” of each line, not the COST. Comcast charges a line fee of $10, but the fee is waived for existing Comcast customers. For sales tax purposes the value of the each line is set at $9. Sales tax is charged on $9 per line even when the line fee is waived.

 

— Sales tax is also charged on some items listed on the bill under “Other charges.” These include Federal Universal Service Fund and Regulatory Recovery Fee.

 

— Federal law prohibits imposing taxes & fees on data  (such as the $12 charge per Gig or $45 for unlimited data). Taxes & fees can only be imposed on non-data items such as line fees, talk, texting, etc. This might explain why XM sets the taxable line fee at $9 instead of $10. The other $1 might be regarded as the value of the included 100 MB of data, and therefore is not taxable.


Below are taxes and fees from my bill. I have only one line, but the same charges would apply to each additional line.

 

1.65   911 Service Surcharge
0.77   Sales tax
0.57   Federal Universal Service Fund
0.07   Regulatory Recovery Fee
———
3.06

Sales tax is 0.77. Tax rate is 8% where I live.

 

Here’s how Comcast calculates the tax:

 

9.00   taxable value of line
0.57   Federal Universal Service Fund
0.07   Regulatory recovery fee
———-
9.64   Taxable amount
x 8%
———-
0.77

 

I think Comcast could do a better job explaining how sales taxes are charged. On the XM page linked above, adding something like this would make things clearer:

 

For XM customers who also have Xfinity internet service, the monthly line fee of $10 is waived. However, sales taxes are charged on a value of $9 per line even when the line fee is waived. Sales taxes are also charged on certain other fees including Federal Universal Service Fund and Regulatory Recovery Fee. Data charges are not subject to sales taxes.

 

New Poster

Re: How Xfinity Mobile calculates sales tax

I was just asking how Xfinity Mobile calculates sales tax, but the representative couldn't explain it to me. I can't come to the $0.95 figure even after taking the $9 per line snd other fees multiplied by 6% tax in Michigan?
New Poster

Re: How Xfinity Mobile calculates sales tax

Data is taxed in Washington I know for sure and I think it is in a few other states as well so if there's some kind of federal regulation than atleast washington doesn't follow that regulation.