One peril of auto-pay: You never know when or how you’ll be nickel-and-dimed. So this actually started with my November cable/Internet bill.
“We have recently reviewed our federal, state, and local tax collection process, and have made updates in accordance with the applicable tax codes for your area.”
Yes, you’re seeing that correctly. There’s a 6% sales tax on the franchise fee. The net increase in the bill ended up being 1 cent, though, because the amount in the first “state sales tax” line decreased.
In January, the “Local Broadcast Channel Surcharge” went up 16 cents, which added 1 cent more in the franchise fee and 1 cent more in sales tax. Right now, that’s a bigger increase than the restructured tax figuring.
But, with Des Moines implementing a 50% increase in the franchise fee starting in July, there will be a higher amount of franchise fee that will then be taxed!
I’m going to reduce my hit from that, starting today. Like many people, the biggest reason I keep cable around is for live sports — and basketball season is now over. So until football season, I’m going to the super-basic bare-bones package. It’s not “cutting the cord” entirely, but when the History Channel isn’t doing anything about history and my “must see TV” is Jeopardy and Star Trek, why not try to save some money?