iPhone 13 Pro Max if I drive 340 miles to pick up iPhone 13 Pro Max in a neighboring state, why isn't sales tax on my online order based on that state's sales tax rate?

[beerseagulls]

(edit: Apple Store called me 2 hours ago and said they cancelled the pick-up order because the phone's box was damaged... so now I'm back to square one <sigh> )


if I drive 340 miles to pick up iPhone 13 Pro Max in a neighboring state, why isn't sales tax on my online order based on that state's sales tax rate?


I just looked at my order pick-up confirmation email. Apple calculated sales tax based on my home address. I opened another incognito browser window and tried to order the same phone... using that Apple Store's location, the sales tax was 1% less. (since that state's tax rate is 1% lower than my state)

When I order online and pick up in person, which state gets the sales tax money? My home state or the state where the Apple Store is located in? I know 1% may not sound like much, but on a $1099 phone, it's $10.99.(enough for almost 2 cups of coffee for the 340-mile drive to the Apple Store tomorrow morning)

 

[internetrando]

It's because you purchased it online. The law (generally) requires that you be taxed for purchases that you make from YOUR state (if the entity has a presence in your state). The tax collected is paid to your state. This is no different than any other online purchase that you make. The only way around it is to physically go to that state and purchase it in-person.

Now, can we talk about why you would drive 340 miles just to get a phone? The difference in tax is more than eaten up in gas costs. That sounds wild to me, but hey, to each their own . . .

 

[Shadowbech]

I'm not quite sure. I once purchased a phone in IL and I live in WI and was given the IL sales tax instead.

 

[beerseagulls]

Now, can we talk about why you would drive 340 miles just to get a phone? The difference in tax is more than eaten up in gas costs. That sounds wild to me, but hey, to each their own . . .

that's an easy one to answer...

prior to last night, my order for the iPhone 13 Pro Max had an expected delivery date of Nov 8.

before I went to sleep at 3:00AM this morning, I was looking at Apple's website and I noticed that the Apple Store 340 miles from me showed one in stock. It was the same color/storage as the one I had on order. So.... I placed a new order for pick up tomorrow. Got a pick-up confirmation email when I woke up this morning.

so my choices were:

(1) wait until November 8... which is 32 days away. (which means I'll be spending 32 days on this forum reading about other people talking about their new iPhone 13 Pro Max)

or

(2) drive 340 miles and have it in hand by noon tomorrow. (and then coming here to ask more questions about the new phone)

took me like 2 seconds to go with option (2) yes, I realize how crazy that sounds, but I'm basically opting for the express shipping.(which costs a little more in gas money, a lunch, and lots of drinks/coffees on the way)

 

[Itsedstech]

Yeah that’s strange. I ordered an m1 iPad Pro for pickup in Oregon while I was in kansas and saved 10% in sales tax lol maybe try a vpn spoof based in whatever state your going to

 

[kirk.vino]

You get taxed based on the state where you’ve purchased it, hence the Apple Store at the Christiana Mall in Delaware has crazy lines all the time. You can really get amazing deals there based on that since there’s no sales tax in DL. I got some Macs there myself.
However, if you purchase something for in-store pickup online, you will need to make sure you check out as a guest, if you want the tax rate of the state where you pick it up. Otherwise, it will pull your account info and tax you based on the state where you reside.

 

[beerseagulls]

I'm not quite sure. I once purchased a phone in IL and I live in WI and was given the IL sales tax instead.

you're right! I just asked my sister-in-law in Chicago to try it. When she opted to pick up in my state, the Apple website did not charge her the usual 10% Illinois(or Chicago) sales tax...

doing a chat with Apple right now... the rep said it should have been based on where the pick-up Apple Store was located... she asked me to hold while she corrected it... still on hold....

 

[beerseagulls]

Yeah that’s strange. I ordered an m1 iPad Pro for pickup in Oregon while I was in kansas and saved 10% in sales tax lol maybe try a vpn spoof based in whatever state your going to

I was never very good at geography back in 5th grade.... I must have missed the part where Oregon shared a border with Kansas.... when I go out tomorrow, I'll also buy a new updated globe of the United States.

(update: Apple rep on online chat just corrected the sales tax and it is now reflecting the 1% lower tax.... $10.99 is still as good as cash and we all know that cash is just as good as money)

 

[nburwell]

You get taxed based on the state where you’ve purchased it, hence the Apple Store at the Christiana Mall in Delaware has crazy lines all the time. You can really get amazing deals there based on that since there’s no sales tax in DL. I got some Macs there myself.

That's one of the reasons why I despise going to the Christiana Mall Apple Store because of the ridiculously long lines there (I'm a DE resident). I'd rather wait an extra week or two for an iPhone I ordered online rather than pick it up and deal with the craziness (talking more so about new iPhone releases).

To the OP, you should be paying the sales tax in the state for which you're picking up the phone.

 

[golfnut1982]

So did you drive 340 miles to save $10? 340 mi/30 mi per gal=11.3 gal of gas. At $3.5 per gal that's $39. Less the $10 bucks you saved, your phone cost you $29 more plus your drinks and other stuff you mentioned.

 

[iOS Geek]

I'm not quite sure. I once purchased a phone in IL and I live in WI and was given the IL sales tax instead.

Because it's Illinois and we suck 😂 We will find any and all ways to get extra money out of people whether they live here or not...it's probably the state's way of making up for how many of us spend up in Wisconsin just to save money 😂

 

[golfnut1982]

Because it's Illinois and we suck 😂 We will find any and all ways to get extra money out of people whether they live here or not...it's probably the state's way of making up for how many of us spend up in Wisconsin just to save money 😂

Or Indiana

 

[beerseagulls]

So did you drive 340 miles to save $10? 340 mi/30 mi per gal=11.3 gal of gas. At $3.5 per gal that's $39. Less the $10 bucks you saved, your phone cost you $29 more plus your drinks and other stuff you mentioned.

considering that my car gets only 9mpg or 10mpg and require premium gas... that $10 won't even get me across the state line(which is about 90 miles away)

no... I'm doing it because it saves me 31 days of waiting.(original order delivery date is still showing November 8) By picking it up tomorrow, I'm getting the gift of time...

or are you advising to just wait the 31 days??? (hope not)

 

[BigMcGuire]

That's one of the reasons why I despise going to the Christiana Mall Apple Store because of the ridiculously long lines there (I'm a DE resident). I'd rather wait an extra week or two for an iPhone I ordered online rather than pick it up and deal with the craziness (talking more so about new iPhone releases).

To the OP, you should be paying the sales tax in the state for which you're picking up the phone.

That's some serious dedication. I saw phones available 30 miles away and I said hell no (here in Southern California). Waited for my local store (15 min drive) to have one and snapped it up. lol.

And yeah, I live on a line that splits 2 counties here in California - it's a difference paying for an item in Los Angeles county vs San Bernardino county.

 

[golfnut1982]

considering that my car gets only 9mpg or 10mpg and require premium gas... that $10 won't even get me across the state line(which is about 90 miles away)

no... I'm doing it because it saves me 31 days of waiting.(original order delivery date is still showing November 8) By picking it up tomorrow, I'm getting the gift of time...

or are you advising to just wait the 31 days??? (hope not)

Now that is a good plan. Enjoy your new phone!

 

[BigMcGuire]

considering that my car gets only 9mpg or 10mpg and require premium gas... that $10 won't even get me across the state line(which is about 90 miles away)

no... I'm doing it because it saves me 31 days of waiting.(original order delivery date is still showing November 8) By picking it up tomorrow, I'm getting the gift of time...

or are you advising to just wait the 31 days??? (hope not)

Driving can be fun and relaxing too!

 

[smirking]

(1) wait until November 8... which is 32 days away. (which means I'll be spending 32 days on this forum reading about other people talking about their new iPhone 13 Pro Max)

For the love of all things bright and shiny, it's just a phone man!

It's also highly unlikely you'd end up waiting the full 32 days. They always pad the estimates just in case so they can under promise and over deliver.

 

[beerseagulls]

Driving can be fun and relaxing too!

I already loaded a couple of my favourite audiobooks for the drive. When I listen to audiobooks, time behind the whell just flies right by me. Drove from NYC to Cincinnati a few years ago... around 12 hours and made only a couple of gas stops... when I got to Cincinnati, I sat in the car in the hotel parking lot for an extra hour just to finish the audiobook... The parking attendant even knocked on my window asking why I was just sitting there...

 

[beerseagulls]

For the love of all things bright and shiny, it's just a phone man!

It's also highly unlikely you'd end up waiting the full 32 days. They always pad the estimates just in case so they can under promise and over deliver.

that's true... but if it doesn't arrive by November 8, I"m pretty sure that Tim Cook won't let me borrow his phone.

I"ve been using my spare tiny iPhone SE(2016) for the last 3 weeks because I sold/traded my other phones to prepare for the iPhone 13 PM, but then I got too busy for a few days and forgot to place my order...

 

[ApfelKuchen]

In many states, the tax is called a "sales and use tax" - officially, a state's resident is expected to voluntarily pay that tax when they make an un-taxed out-of-state purchase and bring it back to their home state.

It gets more interesting when you make an out-of-state purchase and pay that state's tax. In theory (not that anyone does this), the states usually expect that you apply for a refund of the foreign state's tax and then voluntarily pay your home state's tax.

Then, there are the treaty states - there are a number of multi-state treaties where the states have agreed to collect the buyer's home state tax when they arrange cross-border deliveries. So a NY resident who orders from a Connecticut store and has it delivered to NY... will be charged NY tax.

I think in this particular case it's a matter of an arbitrary taxation decision on Apple's part (something undoubtedly vetted by their legal team, perhaps even with consultation with state tax officials). It essentially assumes (correctly in the OP's case) that the buyer's state of residence will be the ultimate place of "delivery," regardless of where the product is picked up.

If it was a gift purchase it would be another question, but even there... The gift recipient is not the person obligated to pay the tax, the buyer (gift-giver) is. So, arguably the tax should be charged based on the buyer's residence.

 

[Itsedstech]

I was never very good at geography back in 5th grade.... I must have missed the part where Oregon shared a border with Kansas.... when I go out tomorrow, I'll also buy a new updated globe of the United States.

(update: Apple rep on online chat just corrected the sales tax and it is now reflecting the 1% lower tax.... $10.99 is still as good as cash and we all know that cash is just as good as money)

Haha no, had a work trip to another one of our plants and our headquarters that’s located in Beaverton. Figured id snatch an iPad while I was there if I could find one for in store pickup and return the one I bought in Kansas already when I got back.