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April 28, 2010
To comply with Hughes’ tax collection obligations, beginning May 1, 2010 all HughesNet customers located in Florida, New York (and New York City), New Hampshire, Tennessee, and Washington will be charged a telecommunications excise tax. For a more detailed explanation of the tax application please visit our Customer Care page at http://customercare.myhughesnet.com/.
Hughes appreciates your business and looks forward to serving your high-speed Internet needs.
State Excise Tax Rates:
| States |
Categories
(see chart below for description) |
Rate % |
URL |
1 |
Florida |
BN, HM, SH |
13.17 |
http://dor.myflorida.com/dor/taxes/cst.html |
2 |
New Hampshire |
BN, HM, IS, LE, SH, TF |
7.0 |
http://www.nh.gov/revenue/forms/comm_services.htm |
3 |
New York State |
BN, CW, EQ, HM, LA, LE, LI, MA, RC, SH, SM, TF, TM, VS |
2.564103 |
http://www.dps.state.ny.us/TelecomTaxesSurcharges.html |
|
New York City |
BN, CW, EQ, HM, LA, LE, LI, MA, RC, SH, SM, TF, TM, VS |
0.598561 |
http://www.dps.state.ny.us/TelecomTaxesSurcharges.html |
4 |
Tennessee |
BN, HM, SH |
7.5 |
http://www.state.tn.us/revenue/tntaxes/tvtelecom.htm |
5 |
Washington |
BN, CW, EQ, HM, IS, LA, LE, LI, MA, RC, SH, SM, SS, TF, TM, VS |
0.484 |
http://dor.wa.gov/docs/reports/telecombaselinereport.pdf |
Category Descriptions
| Tax Category |
Category Type |
Category Description |
States Affected |
BN |
Bundled Pricing |
|
New York City, New York State, Washington, New Hampshire, Florida, Tennessee |
CW |
Civil works/Site preparation |
Services used to prepare customer premises including site preparation, permit acquisitions, and inspections. |
New York City, New York State, Washington |
EQ |
Equipment/Parts |
The sale of all HNS hardware (tangible personal property) which results in title, possession, or both being transferred from HNS to a customer for consideration. Also, includes any bundled services that have equipment as part of the charge. |
New York City, New York State, Washington |
HM |
Shared hub with maintenance |
HNS shared hub (space segment) services bundled with equipment maintenance charges. |
New York City, New York State, Washington, New Hampshire, Florida, Tennessee |
IS |
Internet service |
HNS high-speed broadband internet services. |
Washington, New Hampshire |
LA |
Labor |
The charge for labor re-installation/de-installation at a customer site. Includes all labor for moving any previously installed (used) equipment between sites. |
New York City, New York State, Washington |
LE |
Lease/Try and buy |
Lease or rentals on HNS property are the transfer of possession of property under an HNS license agreement for use or consumption by the customer for a rental or lease charge. This also includes all Try and Buy agreements where the customer is billed for an initial introductory period. |
New York City, New York State, Washington, New Hampshire |
LI |
Labor – Installation |
The separately stated charge for installation on new HNS products. |
New York City, New York State, Washington |
MA |
Equipment maintenance |
Equipment maintenance service agreements. |
New York City, New York State, Washington |
RC |
Rebates/Credits |
Rebates or credits given to customer for returned equipment. |
New York City, New York State, Washington |
SH |
Shared or interim hub services |
Charge for use of HNS shared hub facilities located in Germantown, MD, Southfield, MI, or North Las Vegas, NV. |
New York City, New York State, Washington, New Hampshire, Florida, Tennessee |
SM |
Software maintenance |
Software maintenance service agreements. |
New York City, New York State, Washington |
SS |
Space segment |
Service for the use of HNS satellites in space. |
Washington |
TF |
USF Fee |
USF fee charged to customers and remitted to the U.S. Government. |
New York City, New York State, Washington, New Hampshire |
TM |
Time and material |
Charges for out-of-warranty repair work. Includes all billable repairs. |
New York City, New York State, Washington |
VS |
Support services |
Technical services performed by HNS staff on an as needed or on-call basis. Includes all engineering services. |
New York City, New York State, Washington |
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