If I pay full price for the phone am I not still paying the same amount in contract fees? So the phone is on sale. I still need to sign a 2 year contract for service.
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Must pay sales tax on full price of phone in MA.
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Depends on your service provider..I brought my 8830 with me to Verizon my $99 every flat plan went to $60 something because I brought my phone.
A lot being that it wen through two contracts, my iPhone 4 contract is up and I'll go another 2 years on it.
But that's not what were taking about, you pay tax on the full price of the phone whether you're making payment on it or not, just like a car.
New Hampshire wants any money it can get from Mass (many people from Mass come to NH to shop since NH doesn't have a sales tax)
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New Hampshire wants any money it can get from Mass (many people from Mass come to NH to shop since NH doesn't have a sales tax)
second that. That's why the apple store in Nashua is about 50 foot beyond the NH border. I shop there a lot. I don't mind some sales tax but 40 bucks on top of a iPhone makes it worth to stop by in Nashua. I'm there quite often so cost for gas and driving time are not an issue.
Because you'd be getting double-taxed. You would have to pay the tax on the full amount of the phone. Plus the subsidy is included in the monthly service fees and you'd be taxed on that as well. It's the same argument we all had when AT&T and VZW announced their plans to separate the cost of the device from the cost of service.
No your taxed on the service and the phone..
The subsidy is separate it's been separate since they started offering them in the mid 90's
Well it's not like they make it easy to read the bills, which is probably intentional.
In any case, they don't charge on the full, unsubsidized price in WA state.
It's not really on sale. The carriers found a loop-hole to charge you for the phone, but make it look like you were paying for something else that is non-taxable (the service contract).
The carriers are charging you more for the service contract than the true cost (plus) profit. It's basically 'cost of contract'+'profit on service contract'+'extra profit that just happens to cover their cost of the phone'. This allows them to sell you the phone at a "loss", but to then recover their loss by using the 'extra profit' they build into the service contract payments.
The people who get really robbed are the ones who just buy the service contract without getting a phone, since they are paying for a phone they don't receive.
All that state is doing is closing that loop-hole.
No fair. Buy the phone for $199, must pay sales tax on $650.
Just thought those of you who don't have this situation might enjoy feeling good about where you live.
Doesn't really work here in Ireland, the tax on a $199 purchase here would be over $45 (more than you're paying); or if applied to the $650 would be $149.
Booooh!