T-Mobile Owes $1.8 Million in NY Sales Tax on Bundled Charges

Aug. 14, 2025, 9:12 PM UTC

T-Mobile Northeast LLC must pay nearly $1.8 million in sales tax and interest for recovered fees paid to a federal fund for affordable telecommunication services, a New York Tribunal announced Thursday.

Although the federal universal service fees fees are stated separately on bills, they’re part of the bundled mobile services T-Mobile provides to its customers, Administrative Law Judge Kevin R. Law said for the New York Tax Appeals Tribunal.

A different panel of the New York tribunal held that Time Warner was exempt from sales tax on fees collected from interstate and international services, which aren’t taxable by the state. ...

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