If you’ve been ranting about the government mandate to make all TV broadcasts digital by February 2009, take heart in a small discount the government is offering: Reduced taxes on the digital converter box.

For consumers who use the government-issued $40 coupon (another government subsidy) to buy one of these converter boxes, the purchase is only partially taxable.

The California Board of Equalization said today it plans to send official notices to the state’s 16,000 retailers in upcoming weeks to remind them about the reduced sales tax.

So, the BOE’s example is that if you buy a $49.99 converter box and use the $40 coupon, it should cost $9.99 plus tax. Tax applies to the $9.99, not the $49.99. However, if you didn’t get your coupon (they’re still available!), you’ll pay tax on the full $49.99.

If you already bought your converter box with coupon but got taxed on the full price, the BOE recommends going back to the store and requesting the tax refund.

If the store doesn’t believe you, print out this notice from the BOE: “Tax Exemption for Digital Converter Box Coupons Issued by Federal Government”

[You may also be interested in a post from earlier today: "Millions of digital converter box coupons have expired"]

The digital TV transition affects people who watch TV on analog TVs and rely on an antenna to improve the picture (Read the Gadgetress Guide to the digital TV transition). On Feb. 17, 2009, the major TV channels will broadcast only in digital so analog TV viewers won’t be able to watch TV. However, with a digital converter box, consumers should not notice a difference. In fact, it could be clearer than before.

Earlier:

• Millions of digital converter box coupons have expired
• 23 reviews of digital converter boxes
• Find a store that sells digital converter boxes
• Which (nearly) free digital TV converter box should I buy? (CNet)
• Who Acts as Tech Support for the DTV Transition? (PC Magazine)
• List of DTV converters eligible for the coupon  afterdawn.com)
• Help parents survive the digital TV transition (Gadgetress)
• Guide to the 2009 Digital TV transition (Gadgetress)

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