Communications Tax On Early Termination Fee at Sprint
June 11, 2013
It took a long time and a lot of digging but I finally found the answer to why a communications tax would be charged on top of an early termination fee.
The answer is yes, it is a charge levied by the Department of Revenue. I personally don’t agree with it but the fact is that it is legitimate.
For Florida, the relevant tax law is s.202.11(13)(a)(1) F.S. (see http://www.flsenate.gov/Laws/Statutes/2012/Chapter202/All)
Apparently the “sales price” includes “1. The connection, movement, change, or termination of communications services.” and the sales price is also subject to the communications tax (s.202.12(1)(a)).
It would be nice if Sprint would actually state this up front and be able to provide this information on demand instead it took multiple emails and phone calls and I finally got the answer directly from the Florida D.O.R.
I’m now with t-mobile 🙂
Monthly cost with Sprint for 2 phones: $150 (plus whatever the phones cost, ~$100 each)
Monthly cost with t-mobile for 2 phones: $60 (plus $700 for the 2 Google Nexus 4 phones)
Savings over typical 2 year contract period: $1660
Get on over to t-mobile , do a search for “prepaid”, click plans and then click “Which plan is right for you?” to see the available plans.
The plan I got was a prepaid plan for “$30 per month – Unlimited web and text with 100 minutes talk”. If you need more minutes then there are other plans at a bit more but still way cheaper than Sprint, AT&T and Verizon.
Buy the top up pin numbers from http://www.callingmart.com and you pay no sales tax and all government fees are included so you really do just pay $30 per month, per line.