Did you buy in CA, WHY do we pay so much tax?

Discussion in 'Politics, Religion, Social Issues' started by tivoboy, Jun 19, 2009.

  1. tivoboy macrumors 68040

    May 15, 2005
    So, finally got the iphone (I pre-ordered at the app store) but the apple store where I went to couldn't hook me up, since I have been an att customer too long apparently. They were very nice, but I had to find an ATT store (which hooked me up) to update my account and get it going.

    But, something I found odd, is that apparently in CA, we pay TAX on the FULL VALUE of the device, which for the 32gb 3Gs is 699$, so the tax is like 65$ (which doesn't make sense since tax in this area is 10.25%)

    Regardless, even though the purchase price for a customer eligible for upgrade (I haven't had a new phone in six years on ATT, customer for nearly 20 years with ATT wireless) is 299$, with tax it comes out to 367$?

    Apparently, in CA one pays tax on full value, even though an essentially instant rebate is applied?

    Was this true for everyone buying in CA? I haven't seen it posted here, I can imagine we need the extra tax revenue to fill the dang 24BILLION DOLLARS budget deficit.
  2. Abyssgh0st macrumors 68000


    Jan 12, 2009
    Yes, it is state law.

    Tax on cell phones is based off of full priced, not subsidized.

    My uncle bought his 3G in Santa Monica, and it was refreshed at BestBuy ($149) and tax was like $70.
  3. nparmelee macrumors 6502

    Jan 23, 2008
    Well on the pricing info it warns that " In CA, MA, and RI, sales tax is collected on the unbundled price of iPhone.".
  4. goosnarrggh macrumors 68000

    May 16, 2006
    I cannot answer the "why", but I can confirm that, here in Nova Scotia, Canada, by law, the government also taxes the full retail cost of any non-exempt product or service, prior to the application of any coupons, rebates, etc. (However, I know that if retailers actually reduce the item or service's retail price by putting it on sale, only the reduced sale price is taxed.)
  5. wr1020 macrumors regular

    Jun 10, 2009
    Yeah it's pretty dumb, i paid 55 dollars worth of tax on a $200 device when i ordered my 16gb.
  6. Daiden macrumors 6502a


    Feb 25, 2007
    Chicago, IL
    Relax, California is bankrupt. The state needs all of the taxes it can get.
  7. lakaiordie macrumors 65816

    Jun 17, 2008
  8. darngooddesign macrumors G3

    Jul 4, 2007
    Atlanta, GA
    CA subsidizes Patchouli for its hippies. That's where your extra money is going.
  9. tivoboy thread starter macrumors 68040

    May 15, 2005

    I cannot imagine that buying online would be different if the delivery location is still CA?

    Did people who ordered from ATT online, and got it delivered pay less in tax?
  10. Vegastouch macrumors 603


    Jul 12, 2008
    Las Vegas, NV
    California sucks! Thats just all there is to it. That is just robbery if they are doing that.
  11. map1978 macrumors 68020


    Feb 9, 2006
    Jacksonville, FL
    geez i thought NY was bad with almost 8.4%

    $299 came to $323
  12. jake36wi41 macrumors member

    Sep 12, 2006
    Had the whole "tax on unsubsidized price" issue when I bought the 3G last year in Santa Monica. Called the Apple store and they had no idea why I was charged that much. Glad I did the research and found it out on my own instead of going back into the store like they suggested...
  13. 103734 Guest

    Apr 10, 2007
    This is ******** because people who purchased the same phone at AT&T only payed tax on the price they purchased the phone at!!!!

    Sales tax is tax on the price of the SALE, not some price they pull out of their ass. Whats next, $5 tax on a candy bar because the tax price is $25 while the sale price is $1?!?!
  14. iLoveMyApple macrumors 6502a


    Oct 26, 2008
    Southern California
    We're in a huge mess right now. Apparently (spelling?) it's a good idea to raise tax. Even though the people can't even afford to put food on the table and are losing their houses. It's sad what's happened to California. I've lived here my whole life and can't believe what it's turned into, but yeah, you have to pay the tax on the full price of the phone. I'm in Riverside, CA and our tax is 8.75%. When my sister ordered her iPhone 3G S for $199 it was going to be like $250. I'm not sure.
  15. ok3wire macrumors member

    Jun 15, 2009
    Makes no difference.

    But hey, somebody has to cover the health care costs here for 10 million Mexican citizens. You don't think the Mexican government is going to do it, do you?
  16. weeman macrumors 6502

    May 6, 2007
    Tax sucks! On top of that we have to pay the full retail price

    My $299 iphone ended up being $360.16! :mad:
  17. DarthTreydor macrumors 6502

    May 25, 2007
    Richmond, VA
    Dude. Suck it up. Your state is going bankrupt. We all have to make sacrifices. Now go play with your new phone :)
  18. xxshawnxx macrumors member

    Aug 16, 2008
    San Diego, California
    Somebody who gets it. :D
  19. Primbs macrumors newbie

    May 4, 2009
    The republicans tend to be for lower taxes. California voters have voted for democrats for years and higher taxes have resulted.
  20. 103734 Guest

    Apr 10, 2007
    Its the stupid 2/3rds vote requirement for a budget to pass, every other state has simple majority but nooooooo california has to have 2/3rd!!
  21. goosnarrggh macrumors 68000

    May 16, 2006
    Paradoxical statement, considering the state's governor (who has the power to veto such things) is a republican.

    [edit]Ah, a 2/3 vote requirement for budget bills! That being the case, any budget passed by the state legislature would automatically have the clout to overrule any governor's veto unless the senate came to the governor's side...
  22. DiamondMac macrumors 68040


    Aug 11, 2006
    Washington, D.C.
    Yes, this country has really gone onto a new level of success under Bush
  23. Locoboof macrumors 65816


    Jun 8, 2008
    Bay Area,Cali
    Welcome to the world of apple....it's know as "apple tax" lol I bought mine here in Cali. About 10 minutes from apple headquarters in cupertino ca. 299.99 with free shipping and tax from apple.com 367.00and change.....that's like 20%
  24. MacVixen macrumors 6502

    Jan 26, 2009
    Santa Cruz, CA
  25. DarthTreydor macrumors 6502

    May 25, 2007
    Richmond, VA
    Or you could return it, drive a few hours to Oregon where there is no sales tax and buy it there. That'll show those ineffectual beaurocrats in sacramento who's boss. Although I guess they'd recoup some revenue on the gas you'd have to buy. You just can't win, can you?

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