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Old Jan 6, 2013, 01:13 AM   #1
sabu213
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CA WalMart taxes for i5

How does Wal-Mart get out of paying the taxes. Apple store & AT&T both charge taxes on unsubsidized price. i payed about 52$.

Yet my brother and his wife payed the taxes on the $127.

I did search the forums and couldnt really find a clear answer. this is their reciept from today.

Thanks.
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Old Jan 6, 2013, 02:06 AM   #2
albertxp06
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I don't know how the taxes work either. I bought my 5 from AT&T and I have yet to be charged tax. The only charges I've had was the $199.
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Old Jan 6, 2013, 02:46 AM   #3
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In Canada all subsidized prices are subject to tax....not sure what the rules are in CA.
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Old Jan 6, 2013, 03:52 AM   #4
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In California you pay the tax of the full retail price.
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Old Jan 6, 2013, 04:03 AM   #5
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Originally Posted by AppleFanatic10 View Post
In California you pay the tax of the full retail price.
Not at Wal-Mart. As the reciept shows. Why?
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Old Jan 6, 2013, 04:08 AM   #6
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Originally Posted by sabu213 View Post
Not at Wal-Mart. As the reciept shows. Why?
Why does it matter so much? Next time buy your iPhone at walmart, problem solved.
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Old Jan 6, 2013, 08:09 AM   #7
pat park
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either the staff at Walmart screwed up (poor training) or Walmart has some loophole around CA tax laws.

I certainly paid a lot more than that in taxes at BB!

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Old Jan 6, 2013, 08:17 AM   #8
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In California you pay the tax of the full retail price.
I can confirm this is true. I'm not sure why the OP didn't get taxed correctly though.
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Old Jan 6, 2013, 08:56 AM   #9
tl01
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I don't know why it is... But wal mart does only charge tax based upon the price paid.

All other retailers, you have to pay on the full price in California.
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Old Jan 6, 2013, 10:27 AM   #10
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Originally Posted by tl01 View Post
I don't know why it is... But wal mart does only charge tax based upon the price paid.

All other retailers, you have to pay on the full price in California.
I noticed the same with Walmart, Target and Radio shack.
Their system just rings it up just like any other item purchased and you're being taxed on the subsidized amount you pay for the phone. Wether that's $199, 299 or 399.
Not the full unsubsidized price.
That makes it way cheaper than buying it from Apple or a carriers store.
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Old Jan 6, 2013, 10:47 AM   #11
pat park
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I noticed the same with Walmart, Target and Radio shack.
Their system just rings it up just like any other item purchased and you're being taxed on the subsidized amount you pay for the phone. Wether that's $199, 299 or 399.
Not the full unsubsidized price.
That makes it way cheaper than buying it from Apple or a carriers store.
I wonder if these retailers do not realize they re not collecting the correct tax for these devices? It could be a lot of money in uncollected taxes that the retailer would be responsible for. If there is a loophole and the retailers are getting an advantage over Apple and the carriers, it may be a pretty big issue.
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Old Jan 6, 2013, 10:52 AM   #12
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Originally Posted by pat park View Post
I wonder if these retailers do not realize they re not collecting the correct tax for these devices? It could be a lot of money in uncollected taxes that the retailer would be responsible for. If there is a loophole and the retailers are getting an advantage over Apple and the carriers, it may be a pretty big issue.
Good question.
They will have to change their whole system to recognize and ring up those devices and charge taxes differently than all other items in their stores.
So they probably dont care and just leave it as is.
Hope it stays like that cause in my state the tax between a $199 and a $649 item is a big difference
Come to think of it now that best buy has it for $150 the taxes will be even lower
Or Walmarts $127 deal.

Last edited by Applejuiced; Jan 6, 2013 at 10:57 AM.
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Old Jan 6, 2013, 10:56 AM   #13
SYale
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Same here for the taxes. I bought my iPhone 5, and got taxed on the 127. I asked the associate, and she said it's a Walmart price guarantee kind of thing. She said Walmart just swallows the difference to keep the customer happy...
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Old Jan 6, 2013, 10:58 AM   #14
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The idea of a subsidized phone is that the cost of the phone is spread out over the services for 2 years.

If you pay taxes on the full retail price of the phone up front, then continue to pay for the phone for 2 years (which is taxed again). It's double taxation for the same thing.
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Old Jan 6, 2013, 10:59 AM   #15
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From my experience working in the IT sector of retail, taxes are pretty much going to be every company's major headache as changes in jurisdiction happen all of the time. To me, it looks like a glitch that worked in the favor of the OP's family.

Long story short, sabu, if the state of California was aware of this issue, Wal-Mart would be paying heavy fines, as my company did about a year ago. CA does not mess around when a retailer fusses around with their sales taxes.
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Old Jan 6, 2013, 12:16 PM   #16
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Long story short, sabu, if the state of California was aware of this issue, Wal-Mart would be paying heavy fines, as my company did about a year ago. CA does not mess around when a retailer fusses around with their sales taxes.
CA doesn't care what Walmart charges its customers as long as Sacramento gets its cut.

Last edited by Mrbobb; Jan 6, 2013 at 11:00 PM. Reason: spelling
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Old Jan 6, 2013, 06:45 PM   #17
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Originally Posted by sabu213 View Post
Not at Wal-Mart. As the reciept shows. Why?
I have no idea...
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Old Jan 6, 2013, 10:19 PM   #18
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That's pretty insane. I feel like I got jipped now! haha. I got my iPhone from Best Buy and got charged tax for the full unsubsidized price (while buying it subsidized).

Any who, even if you didn't get charged the full sales tax on the unsubsidized price, according to California law, your supposed to report the rest of the sales tax that you should have paid on your California tax return. Most consumers do not do that though, which is why so many states are battling Amazon to charge sales tax at the point of sale.
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Old Jan 7, 2013, 03:56 AM   #19
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Originally Posted by pat park View Post
I wonder if these retailers do not realize they re not collecting the correct tax for these devices? It could be a lot of money in uncollected taxes that the retailer would be responsible for. If there is a loophole and the retailers are getting an advantage over Apple and the carriers, it may be a pretty big issue.
I believe they do. Walmart is aggressive with tax stuff in California. Sort if like how amazon didn't charge tax in CA for a long time. I know that walmart has avoided some items being taxed too.
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Old Jan 7, 2013, 07:36 AM   #20
RenoG
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People actually have an issue with this...When did taxes become such a budy friend around here..I believe you have until the 15th before the wal-mart deal ends so if you have yet to get your phone go get it at wal mart and save some money.
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Old Jan 7, 2013, 08:37 AM   #21
Superman80
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I would remove the serial numbers if i was you
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Old Jan 7, 2013, 08:55 AM   #22
PhilMcCracken
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I would remove the serial numbers if i was you
Can someone do something with the serial numbers?
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Old Jan 7, 2013, 09:01 AM   #23
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Can someone do something with the serial numbers?
Its probably fine but i just paranoid!
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Old Jan 7, 2013, 09:17 AM   #24
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Its probably fine but i just paranoid!

Yeah, I wasn't sure. In car forums I always see people blurring out their license plates, but it's clearly visible when they are driving down the road.
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Old Jan 7, 2013, 09:28 AM   #25
pat park
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People actually have an issue with this...When did taxes become such a budy friend around here..I believe you have until the 15th before the wal-mart deal ends so if you have yet to get your phone go get it at wal mart and save some money.
the only issue i see people having, they paid more tax when they purchased their phones elsewhere.

If WalMart is dropping the ball and not collecting the correct tax, they'll have to deal with that, probably in a huge fine.

The other question i have is, does WM have sufficient stock of all the colors/sizes?
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