Tax on contract cell phones

LisaR

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Joined
Sep 26, 2000
Messages
9,932
I noticed something odd recently. We are coming up to the end of our two year contract with AT&T on April 1st. Within the past week, we have all switched over to Go-Phones and I will cancel our contract on the 1st.

Contract phones:
$60 for first two phones (550 minutes call time)
$30 for unlimited text messaging family plan
$10 for additional phone

Total cost before taxes for three phones: $100.
My bill every single month for the past two years: $120 - $122
I've talked to AT&T multiple times and that extra $20 is all taxes and government fees. We don't use data.

Go-Phones:
$50 each a month for my phone and DH's phone. (unlimited calls and texts)
$25 a month for DD's phone. (4 hours call time, unlimited texts)

Tax on the $50 phones is $3 each and tax on the $25 phone is $1.50. We pay $7.50 in taxes for three phones compared to $20 in taxes for the contract phones. :confused3 I wonder why contract phones have so many more fees and taxes?
 
I noticed something odd recently. We are coming up to the end of our two year contract with AT&T on April 1st. Within the past week, we have all switched over to Go-Phones and I will cancel our contract on the 1st.

Contract phones:
$60 for first two phones (550 minutes call time)
$30 for unlimited text messaging family plan
$10 for additional phone

Total cost before taxes for three phones: $100.
My bill every single month for the past two years: $120 - $122
I've talked to AT&T multiple times and that extra $20 is all taxes and government fees. We don't use data.

Go-Phones:
$50 each a month for my phone and DH's phone. (unlimited calls and texts)
$25 a month for DD's phone. (4 hours call time, unlimited texts)

Tax on the $50 phones is $3 each and tax on the $25 phone is $1.50. We pay $7.50 in taxes for three phones compared to $20 in taxes for the contract phones. :confused3 I wonder why contract phones have so many more fees and taxes?

Cities charge an additional utility tax. Imagine they can only do it on contract stuff
 


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