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Government Fees and Taxes

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Hey everyone! 

 

Just opened a new line with AT&T and they sent me a "Customer Service Summary". Most of it makes sense like prorated charges and my regular monthly charges. Where I am getting lost at the State and Local Tax. Here are the charges: 

 

Monthly Charges: $150

Prorated Charges & Credits: $19.99

Additional Charges (Activation): $40

Surcharges and Other Fees: $12.80

Government Fees and Taxes: $27.96

 

I live in San Francisco, CA and cannot understand why are my taxes on my wireless bill so high? Everything minus the taxes is $222.79 . To come up with the figure $27.96, I would have needed  to be taxed about 12-13%. On all my receipts over living here, SF District Tax + CA State & Local Sales Tax combined is 8.75%. 

 

So what's going on? 


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