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Thread: Taxes on bundle phones (phone + airtime)

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    Taxes on bundle phones (phone + airtime)

    What is the tax on an eBay or HSN bundle phone that comes with a year's service priced at 49.99?

    I'm in California and the taxes vary from state to state. I've never bought one before but figure the taxes/fees must be quite a bit for the included 1500 mins.

    I have a $5 off eBay coupon and it'd drop the Moto e5 to 44.99. On the other hand I have 15% off on HSN.

    Sent from my moto e5 (XT1920DL) using HoFo mobile app

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    You can see the final price of everything on eBay before paying. Just add it to your cart.
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    Quote Originally Posted by WheelieBoot View Post
    What is the tax on an eBay or HSN bundle phone that comes with a year's service priced at 49.99?

    I'm in California and the taxes vary from state to state. I've never bought one before but figure the taxes/fees must be quite a bit for the included 1500 mins.
    The tax HSN charges is the sales tax for your area based on the selling price of the item. Last month, I bought a phone bundle to use for a Sprint promotion. The bundle price was $69.99, but I had a $10 OFF code which brought it down to $59.99. The sales tax rate for my area is about 10%, so the tax was $5.99.

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    Quote Originally Posted by zapjb View Post
    You can see the final price of everything on eBay before paying. Just add it to your cart.
    If I hit Buy it Now then I'm required to pay for it. I haven't done eBay in a long time and wasn't aware they had shopping cart options where if I decide I don't want it, I can remove it from the cart.

    Sent from my moto e5 (XT1920DL) using HoFo mobile app

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    Don't hit BIN. Choose "Add to cart". Then you are not obligated.

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    Quote Originally Posted by zapjb View Post
    Don't hit BIN. Choose "Add to cart". Then you are not obligated.
    I see, I'll try that.

    I know what my sales tax rate is for my part of the world (7.750%) so I can estimate that but it's the tax they charge for the airtime/year's service is what I'm unsure of. (The Lifeline fee that covers free phones for people in my state). The last time I bought a year's service at the TF website, 49.99 without airtime, the tax was 3.80.

    Thanks for the advice.

    Sent from my moto e5 (XT1920DL) using HoFo mobile app

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    I put the Moto e5 + year's service bundle in my eBay cart without signing in and it said 4.75 estimated tax for a total of 54.54. i signed in and the tax had changed to 3.87 for a total of 53.86.

    3.87 works out to 7.75% which is my sales tax rate.

    There were no fees added for the CA Lifeline program. I'm guessing that gets assessed at checkout, not in the cart. I know those would be added at HSN.

    Sent from my moto e5 (XT1920DL) using HoFo mobile app

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    Price in cart while signed is the otd price.

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    Quote Originally Posted by WheelieBoot View Post
    3.87 works out to 7.75% which is my sales tax rate.

    There were no fees added for the CA Lifeline program. I'm guessing that gets assessed at checkout, not in the cart. I know those would be added at HSN.
    I don't think Ebay and HSN systems are sophisticated enough to calculate itemized cellphone-SERVICE-related taxes and fees. They'll just calculate the taxes based on the price of the bundle. When you buy a bundle on HSN, who is to decide how much of the bundle price is for the hardware and how much is for the service?

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    This is simple not complicated. It's just as I said for eBay.

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    Quote Originally Posted by hpham View Post
    I don't think Ebay and HSN systems are sophisticated enough to calculate itemized cellphone-SERVICE-related taxes and fees. They'll just calculate the taxes based on the price of the bundle. When you buy a bundle on HSN, who is to decide how much of the bundle price is for the hardware and how much is for the service?
    I went to HSN and their 44.99 Samsung bundle was sold out. So was their 49.99 Rebel 4 bundle. I went to QVC and their Rebel bundle was still there so I put it in the cart. They said I had to go to checkout to get the estimated total for taxes, yada. I removed it from the cart.

    I remember a conversation in the forum a long time ago about the MTS surcharges (mobile telephony surcharges) and how they varied state to state. ULTS is universal lifeline telephony surcharge.

    It's hard to find what the rates are but I found a chart and it said for $100 the tax might be 4.50 in an area where the surcharge is 4.50%. My area on the chart said 0%. There were changes to the surcharges in California in January 2019. I know I paid surcharges on TF airtime when I bought it at Rite Aid when I lived in Fresno. I haven't bought it at a store since I moved back to the mountains, only from TF website since then and not in large amounts since I have the year's service add on.

    I guess I'll have to wait to find out til I put the phone bundle in checkout. I was planning on buying the e5 bundle on eBay with the $5 off coupon (it's $10 more on HSN). Then I saw the reconditioned g6 on Walmart & Amazon and was tempted to do it instead.

    If sales tax is all that is charged for the 49.99 year extension at TF site, bought with a $15 smartphone card or $5 text add on, that would be way cheaper than telephony tax on a year's airtime along with the year's service.

    I'm not sure how they would value the 1500 minutes in the phone bundle if they charge 49.99 for the phone plus the airtime.





    Sent from my moto e5 (XT1920DL) using HoFo mobile app

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    Found this old e911 fee thread.

    https://www.howardforums.com/showthread.php?t=1908996

    Sent from my moto e5 (XT1920DL) using HoFo mobile app

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    Quote Originally Posted by zapjb View Post
    Price in cart while signed is the otd price.
    You were right, the price I saw in the cart was the out the door (otd) price. I applied my $5 off coupon to the Moto e5 and after 3.87 tax, I paid 48.86. Am glad to see the PayPal requirement is now optional. It went faster just using my debit directly.

    The expected arrival is May 7th.

    It puzzles me that if I were to buy airtime at the store that I'd have to pay the surcharges on a basic 90 day plan card, but on eBay I got a year's service without paying anything except sales tax on the phone bundle. Not going to complain at all.

    I looked at records and I paid 19.99 for the 90 day plan card with a free ZTE flip at TF website, and .43 e911 fee was levied along with .36 Federal whatever and .04 regulatory to bring it to 20.82 total. That was Nov 2019. That's why I was expecting a levy on the bundle besides the sales tax. I'm glad I was wrong!

    Thanks to those who commented on my question.

    Sent from my moto e6 (XT2005DL) using HoFo mobile app

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    I forgot to mention, the title of the auction says 1 year's service with 1500mins/1500texts/1500mbs. In the description farther down the page, it says 1200mins/1200txts/1200mbs. I wonder what it will actually be.

    The bundle comes with a car charger, a headset, neither of which I actually need. Would have liked to have had one of the paisley phone cases. But as long as the phone activates with its airtime and service and lasts the year I'll definitely have gotten my money's worth.

    https://ebay.us/49NzJ4

    Sent from my moto e6 (XT2005DL) using HoFo mobile app

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    The Bluetooth headset that comes with the eBay TF bundled Moto e5, does anyone know what brand or model it is? I am guessing it recharges rather than using batteries and that it has a microphone so it can be used as a talk headset. I haven't had one like it.

    Also, does the bundle phone have to be activated by the included telephone number / activation link, or can it be activated on chat like other TF's? I intend to activate with a new number, not transfer a number to activate.



    Sent from my moto e6 (XT2005DL) using HoFo mobile app

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