Certain FAN accounts exempt from tax? Premier Store Order

[dangsdunks]

I thought maybe last year i got lucky and they didn't add the tax on the 3GS, i only got charged 199, the tax never ended up being on my bill. I would have noticed because i am a lucky resident of California, and the tax would have been $68.25, since tax here is 9.75%.

I ordered the iPhone 4 early Tuesday morning through the Premier Store, and no charges showed up until today, but it is for the same amount $199.

BTW, this is an Individual FAN account for USPS.

 

[themadrussian]

I thought maybe last year i got lucky and they didn't add the tax on the 3GS, i only got charged 199, the tax never ended up being on my bill. I would have noticed because i am a lucky resident of California, and the tax would have been $68.25, since tax here is 9.75%.

I ordered the iPhone 4 early Tuesday morning through the Premier Store, and no charges showed up until today, but it is for the same amount $199.

BTW, this is an Individual FAN account for USPS.

I live in MA, where they charge you sales tax (6.25%) on the full, unsubsidized price ($699 for the 32GB).

I have an IBM FAN# associated with my account, and when I ordered through AT&T Premier on 6/15 at 2:30 PM ET I got a confirmation email immediately, and neither the email nor the page that listed the cost of the phone and the upgrade fee had any sales tax listed. The email says tax is "TBD" (weird, because normally they just calculate it immediately from the zip code).

Anyway - my AT&T Premier order confirmation email lists the following one-time price of $517.00 (I was not eligible for the full discount so I paid $499 for the phone plus the $18.00 upgrade fee).

However, when I log in to check my credit card information, I see temporary authorization for $530.19. Now, that's weird.

Here's the breakdown:
Phone $499.00
Upgrade fee $18.00
Sales tax on unsubsidized cost $43.68
Sales tax on subsidized cost $31.19

It appears, since the only combination of those prices that leads to $530.19, that AT&T has waived my upgrade fee and charged me sales tax based on the subsidized cost of the phone, which they are not supposed to do!

So weird.

 

[seand1111]

Why would your tax have been $68+?

9.75% of $199 = $19.4025.....

 

[themadrussian]

Why would your tax have been $68+?

9.75% of $199 = $19.4025.....

CA, MA, and RI laws state that sales tax must be calculated on undiscounted/unsubsidized/unbunlded cost of whatever the item is. This includes cell phones. Therefore tax must be paid on the full price of the phone, which is $599/699 for the 16GB/32GB. CA tax is indeed 9.75%. MA is 6.25%. RI is 7%.

 

[iPadztr]

Why would your tax have been $68+?

9.75% of $199 = $19.4025.....

california law will tax you for the full retail price of the phone and not the subsidized price of the phone.

 

[djjclark]

Why would your tax have been $68+?

9.75% of $199 = $19.4025.....

CA taxes on the full retail price

9.75% of $699 = $68.1525

But CA does not tax on service items (yet) so it is all a wash in the end.

 

[dangsdunks]

I live in MA, where they charge you sales tax (6.25%) on the full, unsubsidized price ($699 for the 32GB).

I have an IBM FAN# associated with my account, and when I ordered through AT&T Premier on 6/15 at 2:30 PM ET I got a confirmation email immediately, and neither the email nor the page that listed the cost of the phone and the upgrade fee had any sales tax listed. The email says tax is "TBD" (weird, because normally they just calculate it immediately from the zip code).

Anyway - my AT&T Premier order confirmation email lists the following one-time price of $517.00 (I was not eligible for the full discount so I paid $499 for the phone plus the $18.00 upgrade fee).

However, when I log in to check my credit card information, I see temporary authorization for $530.19. Now, that's weird.

Here's the breakdown:
Phone $499.00
Upgrade fee $18.00
Sales tax on unsubsidized cost $43.68
Sales tax on subsidized cost $31.19

It appears, since the only combination of those prices that leads to $530.19, that AT&T has waived my upgrade fee and charged me sales tax based on the subsidized cost of the phone, which they are not supposed to do!

So weird.

upgrade fee will actually be on the bill.

 

[themadrussian]

CA taxes on the full retail price

9.75% of $699 = $68.1525

But CA does not tax on service items (yet) so it is all a wash in the end.

MA does. We get double-owned.

upgrade fee will actually be on the bill.

Ah, makes sense. Still doesn't explain why AT&T charged me the incorrect (lower) sales tax, though. Oh well, if they don't revise the charge I won't complain.

 

[seand1111]

CA, MA, and RI laws state that sales tax must be calculated on undiscounted/unsubsidized/unbunlded cost of whatever the item is. This includes cell phones. Therefore tax must be paid on the full price of the phone, which is $599/699 for the 16GB/32GB. CA tax is indeed 9.75%. MA is 6.25%. RI is 7%.

california law will tax you for the full retail price of the phone and not the subsidized price of the phone.

CA taxes on the full retail price

9.75% of $699 = $68.1525

But CA does not tax on service items (yet) so it is all a wash in the end.

MA does. We get double-owned.

Damn, thats Fawked up....

Side question; Do yall get taxed on the full sticker price of a vehicle or the negotiated price?

 

[themadrussian]

Damn, thats Fawked up....

Side question; Do yall get taxed on the full sticker price of a vehicle or the negotiated price?

The price that we pay (however the state can decide to tax you higher if they think you didn't pay enough, like if you bought a car for $10) is the price on which are taxed, normally.

With a car you are paying whatever it costs - with a phone AT&T is paying for part of it, so MA wants the sales tax from someone - AT&T just passes on the tax to you, which they are allowed to do.

 

[bat95132]

CA, MA, and RI laws state that sales tax must be calculated on undiscounted/unsubsidized/unbunlded cost of whatever the item is. This includes cell phones. Therefore tax must be paid on the full price of the phone, which is $599/699 for the 16GB/32GB. CA tax is indeed 9.75%. MA is 6.25%. RI is 7%.

Please keep in mind CA is not 9.75%. Some counties in CA are 9.75% but some like Santa Clara County is 9.25% and others are in the 8-9% range and some as high as 10%.

I am not sure about MA or RI

 

[themadrussian]

Please keep in mind CA is not 9.75%. Some counties in CA are 9.75% but some like Santa Clara County is 9.25% and others are in the 8-9% range and some as high as 10%.

I am not sure about MA or RI

Ah - well, MA/RI are 6.25%/7% state-wide.