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Prepaid taxes

  • 23 January 2020
  • 6 replies
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I started with T-Mobile prepaid back in July of last year. To refill online it cost me $.75 each time. I don’t know if that was a tax or a fee but I paid it. Starting this month however it is charging me $3.55 to refill which is a lot more. I called T-Mobile and the customer service rep can’t tell me why.  She said it has to do with local state and city taxes but I told her we have no state and city taxes in New Hampshire.  She could not help me.

Does anyone know what these fees are? 
If I bought prepaid cards is that a way to avoid them?

thank you

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Best answer by shelleynh 24 January 2020, 14:39

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6 replies

I just read another post and found out the New York state tax is 8.875% which is exactly what it is charging me. I think the tax is a mistake and I don’t know who to contact for this. Is there a way to contact somebody about this? I live in NH.

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In 2017 , NH had a state phone tax of 8.81% according to this article but NY had one of 18.30%.

https://taxfoundation.org/cell-phone-taxes-2017/

I wonder why I was only paying $.75 per month last year and this month it went up suddenly. I may just go down to a store to see if they know what’s going on.

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It is the first of the year when new taxes usually start. It seems like every form of government is

taxing cell phone plans.

I doubt someone at the store level will know much about why the taxes increase so I would

suggest contacting T-Force through messenger on Tmobile's Facebook or Twitter page.

I did go to the store last night and the guy there did know that there was a tax imposed on all prepaid plans starting in 2020. He said a lot of people were asking about it.

I may switch over to metro PCS since all taxes are included in their rates.

thanks for your help!

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Hadn't notice the tax increase until now as I was using refill cards I had gotten as gifts last Xmas, finally used them up in May.

I'm in NH too and a recent law change introduced by state reps Lou D'Allesandro (D), Dan Feltes (D), & Peter Leishman (D) now charge a 7% communications services tax on prepaid wireless and VoIP services, effective Jan. 1, 2020.

But since I had been using refill cards, this gave me an idea, so I bought one from Target and was able to refill my prepaid plan with no NH communications tax since NH has no sales tax on products sold at stores (locally or online) in the state of NH.

Plus I've seen from time to time that Target will have discounts on refill cards, so you can get a good deal occasionally and stock up to save a few bucks!

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