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KingofZydeco
LSU Fan
On da bayou
Member since Jul 2009
929 posts

ATT Early Termination Fee - LA Taxes Question
So I finally had enough of ATT/Directv and cancelled 1 year into my 2 year contract. I knew I would be on the hook for a portion of the ETF. What surprised me was the taxes on this $130 ETF were ~10%.

My normal bill only had taxes of ~2-3$.

Is is normal to charge taxes on a ETF from ATT? Why would the taxes be so much different from a normal bill?

To be honest, its not worth my time to fight ATT over, but I was curious others' opinions.



tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
7382 posts
 Online 

re: ATT Early Termination Fee - LA Taxes Question
are they including the equipment/install that is factored in over the 2 years and taxing you on the portion that is left?

cell phone plans that requires a contract just factor the cost of the phone and divide by the length of contract... you terminate early you pay for the remainder of the phone costs not paid


KingofZydeco
LSU Fan
On da bayou
Member since Jul 2009
929 posts

re: ATT Early Termination Fee - LA Taxes Question
The ETF is $10/month for every month left on the contract. Nowhere does it mention equipment/install fee.


Jimmy2shoes
LSU Fan
The South
Member since Mar 2014
6315 posts

re: ATT Early Termination Fee - LA Taxes Question
quote:

To be honest, its not worth my time to fight ATT over, but I was curious others' opinions.

But it is worth the time. Them bastages will continue to do it. Taxes on a fee? don't know if that is legal in LA.



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BallsEleven
LSU Fan
Member since Mar 2019
481 posts

re: ATT Early Termination Fee - LA Taxes Question
I thought it was $20/mo?


KingofZydeco
LSU Fan
On da bayou
Member since Jul 2009
929 posts

re: ATT Early Termination Fee - LA Taxes Question
So I was expecting 20$/month, but apparently since I was a return customer from years before the fee was only $10/month. I actually think they may have screwed that part up, but I’m not complaining!


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Tiger Prawn
LSU Fan
Member since Dec 2016
12390 posts

re: ATT Early Termination Fee - LA Taxes Question
quote:

cell phone plans that requires a contract just factor the cost of the phone and divide by the length of contract... you terminate early you pay for the remainder of the phone costs not paid


OP is talking about home internet and TV, not cell phones. With the TV service, you don't own the equipment so when you cancel service, AT&T makes you return the equipment. They had me drop it off at a UPS Store and UPS scanned it in. There shouldn't be any equipment fees other than the monthly charge if you have extra TV receivers.

Its not like cell phone service where you own and keep the device even after cancelling service. AT&T finances new phone purchases at 0% and spreads it out over I think 24 or installments that gets included on your monthly service bill. If you cancel service before the installments on your phone is paid off, any remaining balance becomes due right away.


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