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Charging tax on a cancellation charge?

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nyheat

Junior Member
I'm in NY, and I just canceled my Vonage account and was charged a $40 cancellation fee.

Is it legal for them to charge taxes on a cancellation fee?

Disconnect Charge $39.99
Sales Tax $3.32
State Excise Tax $1.04
County MCTD Surcharge Sec. 186 $0.25
State Franchise Surcharge Sec. 184-Access $0.16
Local Transit Tax $0.16
County MCTD Surcharge Sec. 184 $0.05
Total Amount $44.97

For instance, it seems odd to me that I have to pay a Transit Tax for a cancellation charge.

Can anyone confirm that they are in fact allowed to do this?
 


You Are Guilty

Senior Member
I'm in NY, and I just canceled my Vonage account and was charged a $40 cancellation fee.

Is it legal for them to charge taxes on a cancellation fee?

Disconnect Charge $39.99
Sales Tax $3.32
State Excise Tax $1.04
County MCTD Surcharge Sec. 186 $0.25
State Franchise Surcharge Sec. 184-Access $0.16
Local Transit Tax $0.16
County MCTD Surcharge Sec. 184 $0.05
Total Amount $44.97

For instance, it seems odd to me that I have to pay a Transit Tax for a cancellation charge.

Can anyone confirm that they are in fact allowed to do this?
Whether they are or not, are you prepared to sue them for $4.98, since that will likely be the only way to get that money back?
 

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