Maybe Time to Switch Cell Phone to a 340 Area Code

Wait a second! When did Texas start having state taxes? They have huge city sales tax, but I didn't know they started a state tax??

"I know that I'm going to get the lecture that I should do it anyway because people don't take you seriously if you don't have a local number. But that's not really a problem for me."

Because no one takes you seriously??:P

I'm not sure how Sprint works but the VI has no state or Government tax. For AT&T, the tax is minimal:
Credits, Adjustments & Other Charges
FEDERAL UNIVERSAL SERVICE CHARGE $1.60
REGULATORY COST RECOVERY CHARGE $0.80

So i would say to switch, definitely!

before I switch I would check into it with Sprint. I tried to move my billing code to STT, leaving the NJ number. I pay the NJ tax, not the STT tax.

Now by moving your entire number to STT you might want to see what the rate difference would be. I suspect that the rate will be higher here in STT.

So gave them a call.

billd

East Ender - there is no state income tax in Texas. But the state definitely charges a tax on cell phones. There's even a line item for some kind of higher ed tax. With respect to being taken serious, let me explain. In previous threads, posters have said that people won't call you back if you don't have a local telephone number. In addition, it's been mentioned that a local number is a necessity for anyone seeking employment here. But I don't think it would be an issue for me.

nforbes - if there's no local sales tax, that would take a big bite out of the monthly bill.

billd - it's worth a call but I have a feeling the average front line rep won't know the answer.

All of this leads to any interesting question. Why not choose the area code that has low or no taxes? Evidently you don't have to live where the taxes are paid. I pay Texas taxes and have a VI billing address.

I am not sure about the "take you seriously" aspect of a 340 area code -- I do know that I refuse to use my only phone - a land line in the VI - to call anyone for any reason, who is on island that requires me to spend long distance charges on what could be a local call if they had a 340 #.

I think many cell phone taxes are paid to states, but are really reimbursement of fees the states pay the FCC. We have a VoIP local number, but our cell phone has a CA area code, because it is paid for by an employer and the work group is in CA, so colleagues can call here as a local call. We have the cell phone because colleagues can't call the 340 area code from the office (it's blocked), and the toll free number assigned to us, which is used by colleagues who are traveling or who work for another division, won't forward calls to the 340 area code. If you comparison shop I'd be interested to hear the results. I predict it won't matter much.

sugar: You all know I was just teasing, don't you? 😛

Wait, you have a VOIP local number? Which service are you using? I just got a Vonage box but I'm not sure I'm going to activate it since I can't have a local number and my wife is adamant about not have two phone systems in the house.

I think many cell phone taxes are paid to states, but are really reimbursement of fees the states pay the FCC. We have a VoIP local number, but our cell phone has a CA area code, because it is paid for by an employer and the work group is in CA, so colleagues can call here as a local call. We have the cell phone because colleagues can't call the 340 area code from the office (it's blocked), and the toll free number assigned to us, which is used by colleagues who are traveling or who work for another division, won't forward calls to the 340 area code. If you comparison shop I'd be interested to hear the results. I predict it won't matter much.

You don't need to pay tax on Sprint based on where your number is, it's based on where you're billing/legal address is. Sometimes you have to fight to find a CSR who knows how to do this but I have a 443 area code number (Maryland) and pay no tax as my billing is setup for the VI.

Sean

GoodToGo,

Several years ago I got a VoIP 340 number from Ackley, which is now BroadbandVI.

They stopped doing this because the only way they could provide a 340 number was by buying DID PBX trunks. This was so costly they could not resell the numbers and make a profit.

Innovative is a rural carrier and isn't legally obligated to provide other carriers with numbers or to facilitate number portability.

Jim

Thanks for the information Jim; I did not know VoIP isn't available to customers who don't already have it.

Well I owe Sean a debt of gratitude and possibly a beer. I called Sprint and they confirmed that the local taxes are based on your legal address -- not your area code. Although I changed the billing address to STX, Sprint still had my residence as Texas. The difference in taxes is $16 a month. The icing on the cake is that I don't need tu advise everyone that I have a new number.

LOL, I may take you up on that beer 🙂

Glad I could help, I did the same exact thing that you did for way too long...this is one of the few cases where living in the VI is actually a great deal moneywise! SHHHH, don't let the senator's know.

Sean