Certain FAN accounts exempt from tax? Premier Store Order

Discussion in 'iPhone' started by dangsdunks, Jun 17, 2010.

  1. dangsdunks macrumors member

    Jan 27, 2009
    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.
  2. themadrussian macrumors regular

    Jun 15, 2010
    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.
  3. seand1111 macrumors regular

    Jan 5, 2009
    SL, Texas
    Why would your tax have been $68+?

    9.75% of $199 = $19.4025..... ;)
  4. themadrussian macrumors regular

    Jun 15, 2010
    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%.
  5. iPadztr macrumors 6502

    Apr 30, 2010
    Pluto avenue
    california law will tax you for the full retail price of the phone and not the subsidized price of the phone.
  6. djjclark macrumors regular

    Feb 17, 2008
    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.
  7. dangsdunks thread starter macrumors member

    Jan 27, 2009
    upgrade fee will actually be on the bill.
  8. themadrussian macrumors regular

    Jun 15, 2010
    MA does. We get double-owned.

    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. ;)
  9. seand1111 macrumors regular

    Jan 5, 2009
    SL, Texas

    :eek: Damn, thats Fawked up....

    Side question; Do yall get taxed on the full sticker price of a vehicle or the negotiated price?
  10. themadrussian macrumors regular

    Jun 15, 2010
    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.
  11. bat95132 macrumors member

    Apr 26, 2010
    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
  12. themadrussian macrumors regular

    Jun 15, 2010
    Ah - well, MA/RI are 6.25%/7% state-wide.

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