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Taxes Frelling Taxes/Fees in Texas
Just got asked a common question: We are in zip code 7606X.. and a Tax Exempt Church.. What would our bill be for 3 lines?
Real answer: We don't know until we bill you.
Almost real answer: Oh. You are in Texas. Probably more than anywhere else.
How ring-u calculates and pays taxes
Unless you are one of the really big guys (AT&T, etc..) who have their own people that do this. Ring-u pays taxes like everyone else, we pay for a tax compliance calculation service and pay what they tell us to pay. We use a real-time billing API from wolterskluwer.com for every invoice (and hopefully payment) we create. They keep track of every taxing authority in the country and when we bill, make sure we charge for every little tax and fee every tax creating state, county and municipality governmental agency plus the federal government. It changes constantly, because in Acme County next Tuesday the local E911 charge increases to $1.1225 per line but the right of way charge drops 0.25. You get the idea, things are always changing.
When we bill someone, the system talk to each other and calculate the taxes. We pay taxes calculated into a big bucket, and from their, they pay every taxing authority out there. We pay when we bill, because that's when the liability is created. Collections is our problem. Welcome to Capitalism 101. 99.99% of the time this works really well.
Because of this, we really don't know until we bill you. A combination of your address and your primary phone number us used to determine “situs”, a tax lawyer term for who gets to tax you. And next Tuesday, or the 1st of next month, it all changes.
Most places
Our basic plan customers are charged $59.95 per month. When taxes and fees are added, their bill usually comes to less than $70.00 per month. Not bad. Eh? $68 and $69 bills are very common.
Texas
Let me explain. I love Texas. My son Ryan was born in Ft. Worth and is a citizen of the Republic of Texas as well as the United States of America. Taxes in Texas are complicated and expensive. Let me share two examples, one, like the recent question is a Church. Texas is BIG. Larger than most countries.
Example 1: This is a business in Texas, see that $10.56 per month fee? That's because Texas is spread out and the cost to bring you high speed internet is insane. All of those miles of muni-right of way to bury fiber on are a “revenue creation opportunity” as well as a real and valid expense. They charge you for it.
Example 2: Dallas is worse. This is a big mega church in Dallas Yes, that $22.32 for the same thing. They also have 3 lines, a full suite of services and a couple of extra phone numbers. Ever done anything in Dallas? It's expensive.