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How to Avoid Cell Phone Taxes: Save an instant 16% on your monthly cell bill

October 26, 2011

How Expensive Are Washington Cell Phone Taxes?
Washington charges 23% on top of everyone’s cell phone bill!  ( Washington is 2nd worst in the nation)  Compare 23% that with residents of Oregon (6.5%) or Nevada (7%) and you start realize Washington is taxing cell phones like cigarettes.

Understanding How AT&T Determines What Tax Rate Your Bill Gets
A Forbes article explains that cell phone companies determine what tax to apply to your account based on the “billing address.”  For example, you live in Washington, you have your bill sent to your home, you get Washington State’s 23% cell tax.  If you live in Las Vegas, you have your bill sent to your Vegas home, you get taxed at Nevada’s 7% cell rate.

But What If….
You live in Washington, but have Las Vegas, Nevada as your billing address.  You get Nevada’s 7% cell tax.  If you don’t know someone in Vegas, just turn on paperless billing on your account.

To recap:  Saving 16% today
By changing your billing address to a dummy address in Vegas, and enabling paperless billing two things will happen instantly:
1  You’ll start receiving all your bills via your email account.
2.  Your bill will be charged Nevada tax rates and you’ll save 16% off your cell phone bill (which could be a lot of money if you have a family or business plan)

It took me only a few minutes online to find the right spot to change it (It can be a dummy address; the zip code has to match up with the address)

I’m currently spending $316 a year in cell taxes alone as a single user!  This will reduce it to $96, saving me $220 a year — enough to buy a new iPhone.  Every year.

Calculating The Savings in 7 seconds
Take your current total bill (with taxes) and multiply it by 1.56 and that’s what you’ll save each year going forward in taxes!

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