Taxes

Subscribers who live in most jurisdictions have sales taxes and similar charges itemized on their bills, in addition to their monthly charges. These taxes are imposed by the state on the purchase of goods and services, and are not limited to DISH.

In many states, DISH is legally required to collect these taxes from subscribers. These charges are as follows (the text in quotes reflects how the item appears on the bill):

Sales Taxes: These are taxes applied to the purchase of goods and services. The applicable rate is set by each state.

• Florida ("Communications Services Tax and Gross Receipts Tax on Video Services"): Florida applies a 9.07% sales tax on the price of satellite service and a 2.37% gross receipts tax. The law requires DISH to collect these taxes from subscribers.

• Kentucky ("Video Excise Tax"): Kentucky applies a 3.0% excise tax on the price of multichannel video programming services. The law requires DISH to collect this tax from subscribers.

• Massachusetts ("Video Excise Tax"): Massachusetts applies a 5.0% excise tax on revenue from the sale of satellite service. The law requires DISH to collect this tax from subscribers.

• Tennessee ("Sales Tax on Satellite Services"): Tennessee applies an 8.25% tax on revenue from the sale of satellite services. The law requires DISH to collect this tax from subscribers.

• Utah ("Tax on Providers of Video Services"): Utah applies a 6.25% tax on the price of multichannel video and audio services. The law requires DISH to collect this tax from subscribers.

Subscribers who live in certain states will also see charges for certain gross receipts taxes. These charges are as follows (quoted text below reflects how this item appears on your bill):

• District of Columbia ("Video Gross Receipts Tax"): DISH is subject to a 10.0% tax on its gross receipts in the District of Columbia.
• Maine ("Video Service Provider Tax"): DISH is subject to a 6.0% tax on the value of the services we provide in Maine, as measured by the sale price.
• Maryland ("Service Provider Tax"): DISH is subject to a 10.0% tax on gross receipts from the sale of boxing and wrestling broadcasts in Maryland.

Although these taxes are similar to other state taxes and fees, which are typically the responsibility of the customer, the states above have chosen to impose these taxes on DISH and other businesses who conduct business in each of the respective states. These taxes are imposed on DISH and are not imposed directly on subscribers. DISH is not required by law to add the charge to a subscriber’s bill.

Subscribers who live in certain states or territories have a specific tax reimbursement charge listed on their bills as part of their monthly charges. These charges are allocated uniformly, are shown as a fixed monthly amount and are subject to change. These charges are as follows (quoted text below reflects how this item appears on your bill):

• Connecticut ("CT Gross Earnings Tax Reimburs"): DISH is subject to a 5.0% tax on its gross earnings in Connecticut. The charge is currently $5.23 per month.
• Delaware ("DE Gross Earnings Tax Reimburs"): DISH is subject to a 2.125% tax on its gross receipts in Delaware. The charge is currently $2.20 per month.
• Kentucky ("KY Gross Earnings Tax Reimburs"): DISH is subject to a utility gross receipts tax of 2.4% on gross receipts from the sale of multi-channel video and audio programming services. The charge is currently $2.49 per month.
• Ohio ("OH State Surcharge"): DISH is subject to a 0.26% tax on its gross earnings in Ohio. The charge is currently $0.37 per month for video and $0.25 per month for broadband.
• Texas ("State Cost Recovery Fee"): DISH is subject to a 0.75% franchise tax for conducting business in Texas. The charge is currently $0.31 per month for video and $0.02 per month for broadband. 
• Puerto Rico ("PR Receiver Property Tax"): Puerto Rico imposes property tax on the cost of a leased receiver. The charge is currently $0.11 per leased receiver per month. 
• Puerto Rico ("PR Cost Recovery Fee"): DISH is subject to various taxes in Puerto Rico, including the business-to-business tax, volume of business tax, and corporate income tax. The charge is currently $4.85 per month.

Although these taxes are similar to other location-specific taxes and fees, which are typically the responsibility of the customer, the states and territories above have chosen to impose these taxes on DISH and other businesses who conduct business in each of the respective locations. These taxes are imposed on DISH and are not imposed directly on subscribers. DISH is not required by law to add the charge to a subscriber’s bill.

DISH collects the FCC Regulatory Surcharge to recover DISH’s direct costs in connection with the payment of Federal Communications Commission regulatory fees.

DISH would like to offer the same high-quality service to all subscribers at the same price nationwide. The gross earnings and gross receipts taxes described above, however, have significantly increased DISH’s cost of doing business in Connecticut, the District of Columbia, Delaware, Kentucky, Maine, Maryland, Ohio, and Texas.

Rather than raise the cost of programming for all subscribers, DISH has chosen to recover this additional cost directly from subscribers who reside in those specific jurisdictions. DISH subscribers in those jurisdictions should consider contacting their governor and state representatives and urging them to repeal these taxes.

If you have any questions about these taxes or charges, please email us at consumertaxissues@dish.com.