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I live in Rhode Island... We have to pay taxes on the full unsubsidized cost of the phone.

LAME!

At any AT&T and Apple store yes.
I noticed if you get it anywhere else like Best buy, Target, walmart or radio shack they only charge you tax on the subsidized amount you're paying.
So today at a local radio shack in Providence I only paid $213.99 for a 16GB iphone 5 upgraded line on my plan.
 
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