TracFone appears to have added their own 2% Tax

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AlGreg

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Location
Great Sacandaga Lake, NY.....San Benito, TX
      I just bought a TracFone 1 year card at Walmart.  The cost of the card was $99.88.  Under the subtotal on my receipt was a line that was "TAX 1  8.250%  $8.24"(sales tax).  Under that was another line that was "TAX 7  2.000%  $2.00".  I asked a manager what the new 2% tax was for.  He made a phone call and told me it was just a new tax that was added about a month ago.  I asked him if it was a federal tax and he said no.  I asked him if it was a state tax and he said no.  Local? no,  County? no  City?  no.  His only other comment to me was that  none of the other phone companies charge this tax.  My question is, how can a phone company add a charge on phone usage and call it a tax if it is not a real tax?  It looks to me like another corporation has come up with a new way sneak in another fee.
 
Without seeing the retailer's books, how do you know who the tax revenue is being sent to? Is Walmart keeping it? Is Tracfone getting it? The store manager perhaps? The point is that tax is being collected and sent somewhere, and without knowing the full details, it's difficult to assign blame to anyone. It could just be a tax that's been there right along, but the MVNO has elected to no longer absorb it in the retail price, or a change in the law has required breaking out certain taxes that were hidden in the retail price, such as is happening in California starting tomorrow under a new law (AB-1717).
 
I think you need to call TracPhone and ask. but there are some Federal mandated fees and the like, such as the Number Portability Fee, which they may list as a "Tax" though "Fee" is more accurate...

I like these Cell Phone ads "You can even keep your old number"...  And I've heard of folks who were told they could not.

The Number Portability act is a federal law/rule.. It says "You can keep your old number" when changing providers, or even changing from wireline to wireless or the other way around...

What can i say...
 
There are also state and local "communications" taxes in many areas. For example, my Verizon Wireless bill includes a Florida 911 fee, a Florida Communications Services Tax, and a County Commercial Services Tax imposed by the county I live in (my billing address). Those are all in addition to the federal surcharges and taxes on communications services.

I would not assume a store department manager has full knowledge of what taxes apply or that the clerk he called at TracFone was all that knowledgeable either.
 
Here is my last Tracfone  airtime purchase on line, maybe this will help.  I live in Nevada.  Dick

Wed Dec. 07, 2016 Time  19:12:09 EST
THANK YOU FOR BUYING AIRTIME!
YOUR TRANSACTION IS COMPLETE! 
Your credit card statement will reflect this purchase as TRACFONE *Airtime.
Transaction ID xxxxxxxxxx6
Purchase Amount  $99.99
Discount  $15.00
Tax1,  Prepaid Wireless 9112,  $0.00
Federal Universal Service3 $1.27
Regulatory Cost Recovery4 $0.17
Purchase Amount $86.43
 
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