MJ's Merger W/ VocalTec May Cause Taxes To Be Collected Soon

macman4hire · Post by **macman4hire** » Sun Jul 18, 2010 3:08 pm

magicJack has recently announced a merger with an Israeli company named VocalTec Communications. VocalTec offers several types of services including wholesale VoIP. This merger might bring magicJack under further scrutiny of the FCC as to why magicJack is not collecting communication taxes and fees. The combining the two companies further erodes magicJack's ability to claim that they are a hardware only provider that should not be subject to collect communication taxes and fees. A company called Ooma who also sells VoIP hardware/services has recently begun to charge its hardware users taxes and regulatory fees. I guess all good things must come to end sooner or later.

cell14 · Post by **cell14** » Mon Jul 19, 2010 1:12 am

As much as I love MJ, I do not think I would renew the service I I had to pay any significant fees or taxes beyond the FL sales' tax which I allready have to pay.
I hope this is a fals alarm.

SIR****TMG · Post by **SIR****TMG** » Sat Oct 02, 2010 10:48 pm

Me too

Diggs · Post by **Diggs** » Sun Oct 03, 2010 11:25 am

I think you guys may be a bit hasty. If there are taxes, they would be applied to any alternative service to MJ. If they are based on a percentage of the sale, then I'd prefer to have them based on the $20 for MJ than the $45 of an alternative phone service.

cell14 · Post by **cell14** » Sun Oct 03, 2010 11:49 pm

If there are taxes, they would be applied to any alternative service to MJ. If they are based on a percentage of the sale,

Unfortunately, many telecommunication surcharges are NOT based on the percentage and are imposed per account and that's where the problem is. And yes, they would be applied to alternative services except for pier to pier or to those where the customer does not get a DID number assigned ( like Localphone outgoing service).

xyzzy · Post by **xyzzy** » Mon Oct 04, 2010 9:16 am

I renewed my service on 9/23 (Gold Plan/2nd Year Upgrade). I was charged $19.95 plus $0.96. This is described on the receipt as "Includes 4.8% surcharge for Regulatory expense, surcharges or taxes".

cell14 · Post by **cell14** » Mon Oct 04, 2010 11:37 am

I was charged $19.95 plus $0.96

That was probably just your state sales tax. We have 6% That's not a full taxation. Look at a land line phone bill or, especially in our state, at a cell phone bill and you will see what I am talking about.

Nobody beats the Whiz! · Mon Oct 04, 2010 12:12 pm

cell14 wrote:
I was charged $19.95 plus $0.96
That was probably just your state sales tax. We have 6% That's not a full taxation. Look at a land line phone bill or, especially in our state, at a cell phone bill and you will see what I am talking about.

I guess he must be a FL resident, then.

I renewed MJ a couple months ago, and I didn't pay any taxes.

bitstopjoe · Post by **bitstopjoe** » Mon Oct 04, 2010 1:50 pm

Same here. I renewed mid Aug and no tax showed up for me...
I agree as it has to be a local tax since MJ is based in FL...

Joe Sica

Sumrall · Post by **Sumrall** » Mon Oct 04, 2010 2:01 pm

Same fee (4.8%) added for me this PM. In Texas.

bitstopjoe · Post by **bitstopjoe** » Mon Oct 04, 2010 2:10 pm

Sumrall wrote:Same fee (4.8%) added for me this PM. In Texas.

Wow I stand corrected, ok I am sitting...
Has to be a new thing then and since we don't get a bill they can't break down what the tax is for... So they are getting extra money and STILL blocking calls. They just get more classy every day...

Joe Sica

Nobody beats the Whiz! · Mon Oct 04, 2010 2:25 pm

You're right, it seems. MJ is playing it straight on one side (collecting regulatory fees), and shady on the other (blocking rural carriers).

xyzzy · Post by **xyzzy** » Mon Oct 04, 2010 3:04 pm

cell14 wrote:
I was charged $19.95 plus $0.96
That was probably just your state sales tax. We have 6% That's not a full taxation. Look at a land line phone bill or, especially in our state, at a cell phone bill and you will see what I am talking about.

NJ sales tax is 7%. The part in quotes is verbatim from the receipt. The previous renewals were all exactly $19.95.

nailgunner · Post by **nailgunner** » Mon Oct 04, 2010 3:56 pm

Obviously with no itemization or detail, "surcharge for regulatory expense, surcharges or taxes", leaves them a lot of room for monkey business. Could be trying to recover the cost of his new corporate jet.

cell14 · Post by **cell14** » Mon Oct 04, 2010 10:08 pm

--- leaves them a lot of room for monkey business. Could be trying to recover the cost of his new corporate jet......

I am a FL resident and MJ has always been charging 6 % sales tax on both the dongle and the subscription. That is legitimate and Dan has to do that otherwise he would have to move from his 10 million $ Palm Beach home to a less pleasant place.
But those 4.8 %, if not a state sales' tax, are probably a monkey business.
Regulatory charges and fees and federal, state and local telecom taxes would be much, much more than that. Just the 911 surcharge where I live would be like $ 6.- a year

couch-potato · Post by **couch-potato** » Fri Mar 04, 2011 6:09 pm

This is the info I got from chat:

Aram: We just implemented Regulatory Fee last year on September

Aram: Annual regulatory fees are mandated by Congress, pursuant to Section 9 of the Communications Act of 1934, as amended. Section 9 requires the Commission to collect regulatory fees to recover the regulatory costs associated with the its enforcement, policy and rulemaking, user information, and international activities.

This is the info I got from:
http://www.fcc.gov/fees/regfees.html

The Federal Communications Commission (FCC) collects regulatory fees to recover the costs of running the FCC. It is overhead that the company (MagicJack) should pay to the FCC, not a tax that is paid by the consumer. The FCC collects 0.349% of revenue from Interstate Telecommunications Service Providers (ITSPs) (including VOIP providers).

MagicJack is charging 4.8%, so it looks like a new corporate jet to me.

Also, a quick look at the FCC Form 499 Filer Database did not reveal any filing by MagicJack or TigerJet. So if they are not paying the FCC Regulatory fee, then it is definitely a scam.

JackSquat · Post by **JackSquat** » Fri Jul 22, 2011 12:48 pm

Thank you for contacting us.
We would like to inform you that the 4.8% regulatory expense is for the Federal, State, Local Taxes or fees with magicJack.
Please feel free to contact us if you have any additional questions.
Sincerely,
magicJack Support

cell14 · Post by **cell14** » Sat Jul 30, 2011 12:48 am

We would like to inform you that the 4.8% regulatory expense is for the Federal, State, Local Taxes or fees with magicJack.
Please feel free to contact us if you have any additional questions

Wow, I wonder which state would that be, since FL (where MJ is located) charges 6%....

JackSquat · Post by **JackSquat** » Sat Jul 30, 2011 11:40 am

cell14 wrote: Wow, I wonder which state would that be, since FL (where MJ is located) charges 6%....

Well, I live somewhere between CA and WA - if that helps.

cell14 · Post by **cell14** » Mon Aug 01, 2011 12:27 am

Well, I live somewhere between CA and WA - if that helps.

You are not getting the point : MJ charges me now also those 4.8 %, while I live in FL and MJ is also located in FL, a bit North of us. There is no way they could get to those 4.8 % using the FL state tax. It is probably just a junk surcharge.

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MJ's Merger W/ VocalTec May Cause Taxes To Be Collected Soon

MJ's Merger W/ VocalTec May Cause Taxes To Be Collected Soon

Today's (7/22/11) Response