Cell Phone Taxes By State 2021


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Additional Details To Consider

TurboTax Review 2022 (Tax Year 2021)

Most accounts are billed for services at the beginning of the cycle and the bill is due within the same bill cycle.

  • As you are billed after the bill cycle begins, you will have 2 payments due in a short period of time if you change your due date.
  • The next bill will be larger because it includes a full month of charges for the new bill cycle, and prorated charges for the current bill cycle.

Older accounts may be billed for services after the bill cycle is closed and will include plan and service charges through the end of the current bill cycle.

  • Your next bill will be for your old billing cycle.
  • The following bill will be a prorated bill that covers a partial month from the end of the previous cycle to the beginning of the new one and it will reflect your new due date.
  • This means that to move to a new due date, you will have 2 bill payments due in a short amount of time.

If after reviewing, you still want to make the change, let us know so we can help you get started.

Understanding Your Telephone Bill

Monthly wireline or wireless phone bills can be confusing, which may be one reason the FCC receives tens of thousands of billing complaints each year. To avoid surprises, learn to read your bill, understand your rights and know what to do if you find a problem.

For more information, click the tabs below.

Fee For New Registration

Description: The sales or lease price of vehicles subject to registration is exempt from sales tax. These vehicles are subject to a fee for new registration equal to 5% of the sales or lease price. This fee for new registration also applies when vehicles are sold between private individuals.

Fee for New Registration: 5% of the sales or lease price

Distribution of Funds: Road Use Tax Fund

Motor vehicle fee for new registration exemption information and worksheets

Recommended Reading: Free Amended Tax Return 2020

How To Use This Guide

Each section of this guide contains information important to your business. The section covers many topics, each in an at-a-glance format that can be expanded to provide more extensive information if you need it.

The section provides key resources related to registration, filing returns, account maintenance and other important information you need.

Lastly, the section provides links to a wealth of information, including web-based seminars, forms and publications, statutory and regulatory information, and access to live help from our customer service representatives.

Please note that this information included is general in nature and is not intended to replace any law or regulation.

Real Estate Transfer Tax

FBR Not providing tax concessions to Foreign Exchange Remittance Card ...

Description: The tax is imposed on the total amount paid for the property. The tax is paid to the county recorder in the county where the real property is located.

Tax Rate: The calculation is based on $.80 per each increment of $500, with the first $500 being excepted from tax. Example:

Purchase Price of $2,600$2,600 – $500 = $2,100$2,100 / $500 = 4.2 5 x $.80 = $4.00 of transfer tax

Distribution of Funds: 17.25% of the tax receipts are retained by the county. Of the remaining 82.75%, 90% goes in the State General Fund, 5% in the Housing Trust Fund, and 5% in the Shelter Assistance Fund

Due Date of Returns: Tax is payable when the deed or other instrument conveying the real property is presented for recording. Tax returns must be filed by the county recorder with the State Treasurer by the 10th day of each month for tax collected during the preceding month.

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Local Hotel And Motel Tax

Description: Local hotel and motel tax is imposed on the gross receipts from the renting of sleeping rooms for 31 consecutive days or less. Contracts for periods of more than 31 consecutive days are exempt. To qualify, the renter must contract to rent for a single period of more than 31 days and cannot accumulate these days.

Tax Rate: May not exceed 7%. This is in addition to the state tax rate of 5%. The state rate for hotels and motels did not increase to 6% on July 1, 2008. Local option tax, if any, does not apply.

Distribution of Funds: The local government imposing the tax

Due Date of Returns: Local hotel and motel tax is reported with quarterly sales tax. They are due the last day of the month following the end of each calendar quarter.

Rates and answers to common questions are available on our hotel and motel page.

Illinois Cell Phone Taxes Highest In Nation

Nearly one-third of the cell phone bills in Illinois are taxes

Illinois cell phone users pay the highest cell service taxes in the nation, according to a new report from the Tax Foundation.

Illinois state and local wireless tax rate is 22.37%, more than 2% higher than the next closest state, Arkansas. When combined with the 9.83% federal rate, Illinoisans pay a 32.2% tax on cell phone service. After Arkansas, the next closest states are Washington, Nebraska and New York. Idaho users pay the lowest in the nation, with a state rate of just 2.71%.

Among Illinois neighboring states, only Missouri ranks close, at the 12th highest rate in the country. Wisconsins rate is the eighth lowest.

Illinois also has the highest sales tax rate on wireless service at 10%. Chicago residents have a higher burden than residents outside the city with their fees being higher.

911 fees also add up to 8.82% of taxation. In 2017, the General Assembly overrode Gov. Bruce Rauners amendatory veto to hike the statewide emergency service fee by 42%.

Illinoisans can thank Illinois House Speaker Michael Madigan for some of their high cell service fees.

The 2017 bill hiking 911 fees was favorable to AT& T and some lawmakers even threatened to cancel 911 services if this version of the bill was not passed.

Earlier this year, federal investigators subpoenaed AT& T for records about their relationship with Madigan. He was also subpoenaed in July for records related to AT& T.

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Why Are My Cell Phone Taxes So High

Over the years, the amount on your cell phone bill has likely dropped. Since 2008, the average price of a cell phone bill has fallen by 23%. One thing that hasnt fallen over the years is the amount of tax you have to pay on a cell phone bill. Theyve gone up from an average of 15.1% to 19.1% of the total bill.

The average family pays around $300 in taxes on their mobile phone plan each year. Cell phone taxes come from multiple sources, including the federal government and state governments. How much you pay depends on where you live. A tax attorney can help you better understand the tax on your cell phone bill and what you can do about it.

Inheritance And Estate Taxes

IRS to being accepting & processing 2021 tax returns Monday here’s what to know

Description: These taxes are imposed on any person who becomes beneficially entitled to any property or interest by any method of transfer. A surviving spouse, decedent’s lineal ascendants, descendants, and stepchildren are exempt from the inheritance tax. Administrators, executors, referees, and trustees of taxable estate transfers may also be liable for such taxes.

Tax Rate:Inheritance Tax: From 1% to 15% depending on the amount of the inheritance and the relationship of the recipient to the decedent.Estate Tax: Prior to July 1, 2008 — Amount by which the allowable federal credit for state death taxes exceeds the inheritance tax due from the estate. On and after July 1, 2008 – Iowa’s estate tax was repealed effective July 1, 2008.

Distribution of Funds: State General Fund

Due Date of Returns: In most instances, the return must be filed and tax paid on or before the last day of the ninth month after the death of the decedent.

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Sales Without A Service Plan

If you sell a mobile phone or other wireless device alone without a required service plan , you need to charge sales tax on the actual sales price you charge for mobile phones or other wireless devices sold separately.

If you sell a mobile phone or wireless device and the ‘unbundled’ sales price is less than 50 percent of your cost, you must pay tax on your cost of the device and you cannot collect tax from your customer on the transaction.

Example :

Purchase price of device from your supplier $250

In general, plans that provide customers with a replacement phone or device if theirs is damaged, lost, or stolen are optional warranty plans.

That is, the customer is not required to purchase the warranty plan with their purchase. Your sales of optional warranty plans are not taxable.

You must either pay the tax to your supplier or directly to the CDTFA on your purchase of replacement parts, phones or other devices provided by you to your customer under optional warranty plans.

Example :

Purchase price of replacement device from your supplier $499

Income School District Surtax

Description: Upon voter approval, school districts may initiate educational improvement programs where school boards may raise an additional portion of the state cost per pupil. This enrichment amount is raised through a surtax and through an accompanying property tax.

Tax Rate: Not to exceed 20% of state income tax liability. The rate is different for each school district. Lists are available within the income tax forms page.

Distribution of Funds: Local school district imposing the tax

Due Date of Returns: Tax is collected with the individual income tax return. Returns are due the last day of the fourth month following the end of the tax year.

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Sales Tax Rate Changes

Access the latest sales and use tax rate changes for cities and counties. Local sales taxes are effective on the first day of the second calendar quarter after the Department of Revenue receives notification of the rate change . Local taxes can also have an expiration date, lowering the sales or use tax rate for that particular city or county. Expirations also take place on the first day of a calendar quarter .

Dry Cleaning Environmental Response Trust Fund Registration Fee

Gas Price Heat Map
Type of Business Fee
Owner/Operator of an Existing Dry Cleaning Facility Electing to be Covered ) 2% of the gross receipts earned in Alabama during the prior calendar year, not to exceed $25,000 per year.
New Owner/Operator Acquiring an Existing Dry Cleaning Facility after May 24, 2000 Electing to be Covered ) 2% of the gross receipts earned in Alabama by the prior owner/operator during the prior calendar year less the amount paid by prior owner/operator, not to exceed $25,000.
New Owner/Operator Establishing a New Dry Cleaning Facility after May 24, 2000 Electing to be Covered ) One-time registration fee of $5,000 for the first year of operation for the second year of operation, the greater of $5,000 or 2% of the gross receipts earned for prior calendar year, not to exceed $25,000. For each year thereafter, see Owner/Operator of an Existing Dry Cleaning Facility above.
Wholesale Distributors of Dry Cleaning Agents ) $5,000 per year
Owner of Abandoned Dry Cleaning Facility or Impacted Third Party ) $5,000 per year, per site

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Tax And Surcharge Estimator

Use this page to get an estimate of the monthly taxes and surcharges you may see on your Verizon wireless bill.About how we bill taxes and surchargesWe use the Service Address for each wireless service line to determine how we bill taxes, other governmental charges and Verizon surcharges. These may vary by the state and locality of your service address or addresses. These include:

  • Government taxes and other charges, which we bill and collect. These are set by federal, state and local governments and are subject to change from time to time.
  • Verizon wireless surcharges, which include a Regulatory Charge a Federal Universal Service Charge to recover charges imposed on us by the government to support universal service and an Administrative and Telco Recovery Charge, which helps defray certain expenses we incur, including: charges we, or our agents, pay local telephone companies for delivering calls from our customers to their customers fees and assessments on our network facilities and services property taxes and the costs we incur responding to regulatory obligations. These surcharges are Verizon wireless charges, not taxes or government imposed fees. These charges, including the amount and whats included, are subject to change from time to time.

Note: Some taxes and surcharges apply to only a portion of your monthly charges, depending on your plan, features and device.

State Common Service Funds

Twenty-two states impose their very own common service fund expenses on wi-fi service that present subsidies for most of the identical functions because the FUSF. Beneath federal legislation, the federal authorities imposes a cost as a proportion of interstate revenues and states could impose a surcharge as a proportion of intrastate revenues. Not too long ago, nonetheless, some states have shifted to a per-line USF imposition, leading to a big portion of the state USF burden being borne by wi-fi household share plans.

As detailed in Appendix Desk B1, the very best per-line cost is at present in Nebraska at $1.75 per line. A household with a share plan with 4 traces pays $7.00 per 30 days even when theyve the lowest-price wi-fi plan. Oklahoma turned the newest state to impose a per-line USF cost, setting the cost at $1.14 per line in 2022. Different per-line state USF impositions are in New Mexico, Maine, Utah, Kentucky, and Maryland.

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Mobile Manufactured And Modular Home Tax

Description: A square footage tax is imposed on homes located in mobile home parks and manufactured home communities. Homes located outside of mobile home parks and manufactured home communities are assessed and taxed as real estate.

Tax Rate: 20¢ per square foot if the home is located in a mobile home park or manufactured home community. The tax decreases when the home is more than five years old to 18¢, and again when the home is more than nine years old to 16¢. If the home is located outside a mobile home park or manufactured home community, the levy rate applicable to real estate.

Distribution of Funds: Collected by the county treasurer and distributed in the same manner as property taxes.

The Federal Universal Service Fund

FreeTaxUSA Review 2022 (Tax Year 2021)

The Federal Universal Service Fund is administered by the FCC under open-ended authority from Congress. The program subsidizes telecommunications services for schools, libraries, hospitals, low-income people, and rural telephone companies operating in high-cost areas. The FCC has also recently decided to use funds to subsidize broadband deployment.

The FCC has authority to set spending for these programs outside of the normal congressional appropriations process. After deciding what to spend on the various programs, the FCC sets the quarterly contribution factor or surcharge rate that telecommunications providers must remit to the FUSF to generate sufficient revenues to fund the expenditure commitments. Providers may elect to surcharge these contributions on their customer bills.

FUSF surcharges apply only to revenues from interstate telecommunications services. They currently do not apply to internet access service, information services, and intrastate telecommunications services.

Alternatively, carriers may use a single uniform national safe harbor percentage to its fixed monthly plans. The FCC currently sets this safe harbor at 37.1 percent of the fixed monthly charge. For example, when determining the FUSF, a $50 monthly wireless voice calling plan is deemed to include $18.55 in interstate calls and $31.45 in intrastate calls. If a carrier elects to use the safe harbor, the FUSF rate would be applied to $18.55 of the bill each month.

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Gambling Social And Charitable

The Social and Charitable Gambling Unit of the Iowa Department of Inspections and Appeals has administrative control for amusement games, contests, casino nights, and commercial promotions operated in the state. In addition, the unit regulates and licenses all games of skill and chance, bingo operations, raffles, and social gambling activities.

See Iowa Tax on Gambling.

Hospital Assessment For Medicaid Tax Rates

Tax Rate
6.0% of the hospitals net patient revenue. Privately operated hospitals in the state of Alabama that are funded through the Alabama Medicaid program are taxed according to their net patient revenue. The assessment is a cost of doing business as a privately operated hospital in the state of Alabama. Assessment amounts are to be paid in equal quarterly installments by the 15th working day of each quarter.
5.75% of the hospitals net patient revenue. Privately operated hospitals in the state of Alabama that are funded through the Alabama Medicaid program are taxed according to their net patient revenue. The assessment is a cost of doing business as a privately operated hospital in the state of Alabama. Assessment amounts are to be paid in equal quarterly installments by the 15th working day of each quarter.
5.5% of the hospitals net patient revenue. Privately operated hospitals in the state of Alabama that are funded through the Alabama Medicaid program are taxed according to their net patient revenue. The assessment is a cost of doing business as a privately operated hospital in the state of Alabama. Assessment amounts are to be paid in equal quarterly installments by the 10th working day of each quarter.

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