AT&T charges taxes on ETF?

Discussion in 'iPhone' started by fabianvs, Sep 26, 2014.

  1. fabianvs macrumors regular

    fabianvs

    Joined:
    Jun 12, 2009
    Location:
    FL
    #1
    I wanted to unlock my new iPhone 6 so I could use it internationally, online "Ryan Blackham" wanted to charge me $390.34 after taxes for an ETF. After going to my local store they charged me the regular $325 and said there is NEVER A TAX ON ETF. Good job AT&T. Awful company.

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  2. Newtons Apple Suspended

    Newtons Apple

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    Mar 12, 2014
    Location:
    Jacksonville, Florida
    #2
    If sales tax is surposed to be charged for this fee, it is not Applle's fault it is the State of Florida!
     
  3. Givmeabrek macrumors 68040

    Givmeabrek

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    Location:
    NY
    #3
    I never heard of a tax on a fee like that. Isn't like taxing a tax?? :eek:
     
  4. fabianvs thread starter macrumors regular

    fabianvs

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    Jun 12, 2009
    Location:
    FL
    #4
    I know this has nothing to do with Apple, I just feel this forum would get coverage for it. There is no such thing as a tax of ETF, the guy was just trying to overcharge me. Doesn't matter what state you live in.
     
  5. 617aircav Suspended

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    Jul 2, 2012
    #5
    ive paid tax on etf on sprint before.
     
  6. rui no onna macrumors 601

    rui no onna

    Joined:
    Oct 25, 2013
    #6
    The Early Termination Fee is a fee. It's not a tax. States (and even localities) have varying laws on taxation of cellphone service and fees so yes, final bill will be dependent on local tax laws.
     
  7. mtneer macrumors 68020

    mtneer

    Joined:
    Sep 15, 2012
    #7
    The ETF is a service that is being provided to enable you to unlock your phone. So, yeah I see no reason why it should be tax exempt.
     
  8. fabianvs thread starter macrumors regular

    fabianvs

    Joined:
    Jun 12, 2009
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    FL
    #8
    That's about a 20% tax, I've never heard of that ;) I still stick to my theory that he was trying to overcharge me. The person in the store had NEVER heard of anything like this.
     
  9. rmhop81 macrumors 68020

    rmhop81

    Joined:
    Apr 4, 2005
    Location:
    Dallas, TX
    #9
    the other interesting thing...if you have corporate discount...they apply that to ETF also. Which seems weird....good for people as it's cheaper but still.

    So they can discount it if you have corporate FAN, plus they charge tax.
     
  10. fabianvs thread starter macrumors regular

    fabianvs

    Joined:
    Jun 12, 2009
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    FL
    #10
    I actually do have that discount, got no special treatment though, just a little extra tax -- atleast tried to. :p
     
  11. rmhop81 macrumors 68020

    rmhop81

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    Apr 4, 2005
    Location:
    Dallas, TX
    #11
    they must have stopped doing that. It was a few years back when i left and was surprised to see it applies to ETF haha
     
  12. kerrikins macrumors 65816

    Joined:
    Sep 22, 2012
    #12
    Reps don't even usually have the ability to 'manually' charge you tax, it's automatically taken care of in the system. How did you pay in the store? Up front, or did you have it billed to your account?
     
  13. Newtons Apple Suspended

    Newtons Apple

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    Mar 12, 2014
    Location:
    Jacksonville, Florida
    #13
    No it is taxing a fee!

    Next year our government will likely try to tax the taxes. This is not a carriier thing it is a state and federal thing and it will only get worst until we do something about it.
     
  14. blevins321 macrumors 68030

    Joined:
    Dec 24, 2010
    Location:
    Winnipeg, MB
    #14
    This isn't the government's issue. It's the carriers.' The gov just has a fee on all wireless charges. Whether or not those charges are a monthly plan or a one-time charge, it's still just a taxable figure for them. They have nothing to do with charging the fee - that is entirely a carrier choice.
     
  15. rui no onna macrumors 601

    rui no onna

    Joined:
    Oct 25, 2013
    #15
    Carriers have ETFs to guarantee that they'll be able to recover whatever amount they subsidized on that "$199/299/399/499" smartphone. Besides on MSVP, those on 2-year contracts pay higher taxes, too (based on $40/line) compared to those on BYOD/NEXT (based on $15-25/line). Just so happens when you pay the ETF, you pay the service tax in lump sum.

    This is another reason I prefer BYOD/NEXT instead of contract. I live in SoCal so I get taxed on the device twice with a 2-year contract: 1) sales tax on full MSRP upfront, and 2) tax on service fees which include the subsidy recovery.
     
  16. fabianvs thread starter macrumors regular

    fabianvs

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    FL
    #16
    Yeah, up front. just a seperate charge from my monthly bill.
     
  17. Newtons Apple Suspended

    Newtons Apple

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    Mar 12, 2014
    Location:
    Jacksonville, Florida
    #17
    The TAX on the FEE is NOT the carrier's choice!

    That is all!:mad:
     
  18. fabianvs thread starter macrumors regular

    fabianvs

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    Jun 12, 2009
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    FL
    #18
  19. rui no onna macrumors 601

    rui no onna

    Joined:
    Oct 25, 2013
    #19
    I don't know how they can even guarantee that since tax laws vary by state, county, municipality, etc.

    The fee is not a penalty and will likely be considered a service charge so taxation is dependent on state and local laws.
     

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