Virgin Mobile

Monthly charge $0.08 ... plus $1.16 in taxes. Why is the tax several times more?

Enthusiast

Monthly charge $0.08 ... plus $1.16 in taxes. Why is the tax several times more?

And there is no breakdown of how VM arrives at those charges. Is that not required by law?

4 REPLIES 4
Heavy Hitter

Re: Monthly charge $0.08 ... plus $1.16 in taxes. Why is the tax several times more?

The tax is likely a sales tax on the value/cost of the service received, e.g., $50

Enthusiast

Re: Monthly charge $0.08 ... plus $1.16 in taxes. Why is the tax several times more?

That cannot be because they charged me $2.08 in Tax on a $10 Hot-spot add-on. Why can VM not provide line item details.
Virgin Mobile Alumni

Re: Monthly charge $0.08 ... plus $1.16 in taxes. Why is the tax several times more?

Hey Vulcanman,  that number is a direct reflection of your federal, state, county & city taxes combined—all based on the exact zip code provided. 

Highlighted
Virgin Mobile Alumni

Re: Monthly charge $0.08 ... plus $1.16 in taxes. Why is the tax several times more?

You're right, Hawki, that number is a reflection of federal, state, county & city taxes. However, it is only applied to the .08 cents that we charge for service, not the whole $50!