iPhone5 Upgrade: How is Sales Tax Calculated?!

Scottyee · 03:42 AM

I just pre-ordered online, a $399.99 64GB iPhone5 (Black) from Verizon Wireless because they (Verizon) offered me a $30 phone upgrade discount credit bringing the price down to $369.99.

The sales tax in my area (San Francisco Bay Area) is 8.75%.

The sales tax for my iPhone5 came to $74.37, so must have been
based on the full retail ($849.99) price of the iphone5, and not
my $399.99 2 year contract renewal price.

If ordered from Apple, would Apple calculate the sales tax differently?

In addition, Verizon charges a $30 upgrade activation fee. Would this fee be charged if my Verizon iPhone5 were ordered from Apple instead?

Thanks.

HowardSmith · Sep 14, 2012, 03:39 AM

I think they do charge tax on the higher non-upgrade price, it has been discussed before and there is a upgrade fee.

dave006 · Sep 14, 2012, 03:40 AM

Yes, Apple would have to charge you tax based on the full retail price just like Verizon did. Blame the state you live in. California and Rhode Island both do this.

Yes, you have to pay the $30 fee to Verizon since even though you purchased the device from Apple your contract is with Verizon.

Dave

crewpride · Sep 14, 2012, 03:41 AM

I believe California and Rhode Island are subject to tax on the full item price. Not sure about other states but it mentions these two on apples website.

iphone495 · Sep 14, 2012, 03:41 AM

Quote:

Originally Posted by Scottyee

I just pre-ordered online, a $399 64GB iPhone5 (Black) from Verizon Wireless because they (Verizon) offered me a $30 phone upgrade discount credit.

The sales tax in my area (San Francisco Bay Area) is 8.75%.

The sales tax for my iPhone5 came to $74.37, so must have been
based on the full retail ($849.99) price of the iphone5, and not
the $399.99 2 year contract renewal price.

If ordered from Apple, would Apple calculate the sales tax differently?

In addition, Verizon charges a $30 upgrade activation fee. Would this fee be charged if my Verizon iPhone5 were purchased from Apple as well?

Thanks.

Yes, you would be charged the activation fee if you order from Apple too. I don't know why your sales tax is that high tough, mine was like 11 bucks. When I did my upgrade from Apple, it based my sales tax on what I paid, not what I would've paid without contract.

thenobody · Sep 14, 2012, 03:42 AM

We got charged two different sales taxes with two phones going to the same area. $9 difference. Crazy but whatever

dieburnbot · Sep 14, 2012, 04:10 AM

Haha yah California sucks for cell phones. That's why I have mine shipped to my brother in Arizona and then he ships it to me with priority mail. Save about 40 bucks in taxes. Only drawback is I have to wait a day or two.

dudemanla · Sep 14, 2012, 01:15 PM

Call your Phone company and ask them to waive the upgrade fee. If you have been a valued customer for a long time then they will probably waive it as a courtesy. They may note it on your account to waive it and when your next bill comes in give Verizon or ATT a call and request to waive the upgrade fee.

I did that with ATT and because I am a long time customer and I pay my bill ontime every month ATT told me they would waive it and they told me to call them when I get my bill.

Quote:

Originally Posted by Scottyee

I just pre-ordered online, a $399.99 64GB iPhone5 (Black) from Verizon Wireless because they (Verizon) offered me a $30 phone upgrade discount credit bringing the price down to $369.99.

The sales tax in my area (San Francisco Bay Area) is 8.75%.

The sales tax for my iPhone5 came to $74.37, so must have been
based on the full retail ($849.99) price of the iphone5, and not
my $399.99 2 year contract renewal price.

If ordered from Apple, would Apple calculate the sales tax differently?

In addition, Verizon charges a $30 upgrade activation fee. Would this fee be charged if my Verizon iPhone5 were ordered from Apple instead?

Thanks.

ericver · Nov 5, 2012, 04:32 PM

Quote:

Originally Posted by dieburnbot

Haha yah California sucks for cell phones. That's why I have mine shipped to my brother in Arizona and then he ships it to me with priority mail. Save about 40 bucks in taxes. Only drawback is I have to wait a day or two.

How did you do it? Did you purchased it on-line and have it shipped to your brother or your brother ordered the phone in AZ for you. Thanks.

dieburnbot · Nov 7, 2012, 10:28 PM

Quote:

Originally Posted by ericver

How did you do it? Did you purchased it on-line and have it shipped to your brother or your brother ordered the phone in AZ for you. Thanks.

I have AT&T. So what I do is login into the wireless account and change the account billing address to the address I want it shipped to.

Then I change the billing address of my credit card to match the shipping address as well (Amex lets you do it online very quickly). Then I order it online.

If you want you can also have the receiving person purchase it in store for you. They have to be listed on your account as an authorized user though. AT&T lets you add those on the website as well. Only drawback to this method is that you'll have to setup a way to pay the buyer.

albertxp06 · Nov 7, 2012, 11:05 PM

That's odd. I pre-ordered a 16GB iPhone 5 from AT&T and I didn't get charged tax at all. Credit card statement has a charge of $199.99 and my monthly bills stayed the same. Huh.

I live in CA and I got charged tax when I bought my iPhone 4 in-store.

Sep 14, 2012, 03:37 AM	#1
Scottyee macrumors regular Join Date: Mar 2012 Location: San Francisco Bay Area, USA	iPhone5 Upgrade: How is Sales Tax Calculated?! I just pre-ordered online, a $399.99 64GB iPhone5 (Black) from Verizon Wireless because they (Verizon) offered me a $30 phone upgrade discount credit bringing the price down to $369.99. The sales tax in my area (San Francisco Bay Area) is 8.75%. The sales tax for my iPhone5 came to $74.37, so must have been based on the full retail ($849.99) price of the iphone5, and not my $399.99 2 year contract renewal price. If ordered from Apple, would Apple calculate the sales tax differently? In addition, Verizon charges a $30 upgrade activation fee. Would this fee be charged if my Verizon iPhone5 were ordered from Apple instead? Thanks. Last edited by Scottyee; Sep 14, 2012 at 03:42 AM.
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Sep 14, 2012, 04:10 AM	#7
dieburnbot macrumors 6502a Join Date: Aug 2008 Location: CA	Haha yah California sucks for cell phones. That's why I have mine shipped to my brother in Arizona and then he ships it to me with priority mail. Save about 40 bucks in taxes. Only drawback is I have to wait a day or two. __________________ iPhone 5 64GB White iPhone 4S 64GB White iPad 3rd Gen 64GB AT&T Black iPhone 4 32GB Black iPhone 3G 8GB
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Sep 14, 2012, 03:39 AM	#2
HowardSmith Banned Join Date: Sep 2012	I think they do charge tax on the higher non-upgrade price, it has been discussed before and there is a upgrade fee.
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Sep 14, 2012, 03:40 AM	#3
dave006 macrumors 68000 Join Date: Jul 2008	Yes, Apple would have to charge you tax based on the full retail price just like Verizon did. Blame the state you live in. California and Rhode Island both do this. Yes, you have to pay the $30 fee to Verizon since even though you purchased the device from Apple your contract is with Verizon. Dave
	0

Sep 14, 2012, 03:41 AM	#4
crewpride macrumors member Join Date: Aug 2010 Location: California	I believe California and Rhode Island are subject to tax on the full item price. Not sure about other states but it mentions these two on apples website.
	0

Sep 14, 2012, 03:42 AM	#6
thenobody macrumors member Join Date: Mar 2011	We got charged two different sales taxes with two phones going to the same area. $9 difference. Crazy but whatever
	0

Nov 7, 2012, 11:05 PM	#11
albertxp06 macrumors regular Join Date: Oct 2011 Location: California	That's odd. I pre-ordered a 16GB iPhone 5 from AT&T and I didn't get charged tax at all. Credit card statement has a charge of $199.99 and my monthly bills stayed the same. Huh. I live in CA and I got charged tax when I bought my iPhone 4 in-store.
	0