Sales tax?

Discussion in 'iPhone' started by thecore762, Nov 29, 2014.

  1. thecore762 macrumors regular

    Joined:
    Sep 20, 2014
    #1
    So I bought my last two iPhones from the Apple store and one thing I noticed is that when I buy the iPhone from the Apple store they charge tax for the price of the phone (discounted) instead of the full retail price when buying it with a contract...is there a reason why Apple can do this and not merchants like AT&T/Best Buy/Wal mart?

    I have a $280 BB GC that I plan to use at BB tomorrow to buy my dad an iPhone 6 64GB...but it would be nice to save money on Sales tax...
     
  2. Newtons Apple Suspended

    Newtons Apple

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    Mar 12, 2014
    Location:
    Jacksonville, Florida
    #2
    From what I understand, if you buy a discounted phone on a plan, you have to pay sales tax on the full value of the phone.

    Our government will not be deigned and they need the money. Just because we are in a recession does not mean they are.
     
  3. maflynn Moderator

    maflynn

    Staff Member

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    May 3, 2009
    Location:
    Boston
    #3
    There's no saving on sales tax, you have pay the tax on the full price. I'm not sure why buying it on the apple store showed something different. When I bought my phones on subsidy from apple, I paid the tax on the full price.
     
  4. Ken Kaniff macrumors regular

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    Nov 8, 2014
    Location:
    Connecticut
    #4
    Purchase your phone in Alaska, Montana, New Hampshire, Delaware or Oregon if you don't want to pay sales tax, as those states do not have a sales tax.

    Beyond that.. I'm sort of confused about your actual question.
     
  5. the caveman macrumors 6502

    Joined:
    Aug 21, 2007
    #5

    The actual question was, why should one pay sales tax on the full price vs the subsidized price. Here in Washington state, seattle are, the sales tax is a ridiculous 9,6% so lets round up to 10%, when i purchased xbox one for a promotion price,plus coupons, for $250, i had to pay $40 in taxes because thats the regular price of the kinectless xbox, vs just having to pay $25 in taxes on the actual sale price.
     
  6. GoSh4rks macrumors 6502

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    Sep 14, 2012
    #6
    Because somebody made that the law (in your state).

    Pretty simple.
     
  7. Newtons Apple, Nov 29, 2014
    Last edited: Nov 29, 2014

    Newtons Apple Suspended

    Newtons Apple

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    #7
    Mainly because it is the law. Basically if you bought a $700 phone outright you would pay sales taxes. Just because you are stretching your payments out over two years, they insist on collecting the tax anyway and the want it NOW!

    It has been this way for a while.
     
  8. the caveman macrumors 6502

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    Aug 21, 2007
    #8

    Im well aware of that, i wasn't the one asking the question
     
  9. thecore762 thread starter macrumors regular

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    Sep 20, 2014
    #9
    IPHONE 6 SILVER 64GB AT&T-USA $299.00 TAX PAID $23.10

    ^ They are not taxing me for the full retail price here in Nevada...
    That's how its been the last two iPhone upgrades for me when I buy it directly from Apple in Reno Nevada.

    If I buy it from any other retailers here in Nevada they tax me for the full retail price.

    Weird no?
     
  10. psylence2k, Nov 29, 2014
    Last edited: Nov 30, 2014

    psylence2k macrumors 6502

    Joined:
    Nov 16, 2012
    #10
    There are state laws that either allow or require retailers to charge full price tax on discounted phone upgrades.

    Certain retailers either choose not to charge or eat the cost. Walmart and Sams Club are retailers that dont charge the extra full price tax.
     
  11. aristobrat macrumors G5

    Joined:
    Oct 14, 2005
    #11
    Weird. Apple mentions CA and RI as the only two states where they tax on the full amount. http://store.apple.com/us/help/payments

    A quick Google around shows people in your state complaining about Best Buy doing the tax on the full amount.
     
  12. Cyberguycpt macrumors 6502a

    Cyberguycpt

    Joined:
    Sep 28, 2014
    #12
    I once purchased a phone in Vegas and when I returned it in Los Angeles they charged me extra for the tax. So just make sure what you buy in Vegas you return in Vegas. Lol
     
  13. TheIntruder macrumors 6502a

    TheIntruder

    Joined:
    Jul 2, 2008
    #13
    Depends on state law.

    In my state, for phones bundled with service (aka subsidized contract phones), taxes are calculated based on the full unsubsidized price.

    Unlocked phones without service are taxed like any other retail item.

    They've got both bases covered, and will get their pound of flesh either way.

    You know what they say about death and taxes...
     
  14. maflynn Moderator

    maflynn

    Staff Member

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    May 3, 2009
    Location:
    Boston
    #14
    Its one of two things. Online apple gives an estimate of tax, not the actual tax until you buy it. So maybe (I'm reaching for straws) what you see is the estimate.

    What's more likely the case, is your local state doesn't charge you on the unsubsidized price.

    Third, it may be a computer mistake on the retailer's part.
     
  15. KPOM macrumors G5

    Joined:
    Oct 23, 2010
    #15
    It depends on the state. Here in Illinois, we pay sales tax on the discounted price. In other states like California, it is on the full price.

    I noticed that Apple online charges only the state sales tax here, while the stores charge the local taxes. They are probably collecting just the bare minimum that state law requires.
     
  16. bushido Suspended

    bushido

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    Germany
    #16
    Lol I love how you call 10% ridiculous. It's 19% over here and I think that's still one of the cheapest in Europe
     
  17. the caveman macrumors 6502

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    Aug 21, 2007
    #17

    Where is that at?
     
  18. lordofthereef macrumors G5

    lordofthereef

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    Nov 29, 2011
    Location:
    Boston, MA
    #18
    I can only assume that you are taxed less in other avenues. If not, that is truly unfortunate for you folks.

    I do know most europeans scoff at the high prices of our data/texts/minutes. :)
     
  19. the caveman macrumors 6502

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    Aug 21, 2007
    #19
    19% sales tax is beyond abhorrent, how are people surviving? There must be an offset like higher wages or something
     
  20. bushido, Nov 30, 2014
    Last edited: Nov 30, 2014

    bushido Suspended

    bushido

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    Mar 26, 2008
    Location:
    Germany
    #20
    Most is 19%, groceries and magazines r only 7% though. I know most countries have 20-24%

    Income tax is up to 45% too

    http://en.m.wikipedia.org/wiki/Tax_rates_of_Europe
     
  21. Applejuiced macrumors Westmere

    Applejuiced

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    Apr 16, 2008
    Location:
    At the iPhone hacks section.
    #21
    I noticed the same with some retailers. Radio shack, Walmart and a few others don't charge on the full unsubsidized price. Just the $199 price.
    You gotta find the loopholes and use them to save a few.
     
  22. thecore762 thread starter macrumors regular

    Joined:
    Sep 20, 2014
    #22
    Its not the estimate, its on my receipt. That's what I paid when I went to buy my 2nd iPhone.
    And no its not a mistake, I bought the iPhone 6 128GB and iPhone 6 64GB and both taxed me for $399 and $299 tax instead of charging me the full retail value in store.

    They even told me at the apple store that most people rather buy it directly from them because they don't tax you for the full retail price.
     
  23. lordofthereef macrumors G5

    lordofthereef

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    Nov 29, 2011
    Location:
    Boston, MA
    #23
    Here is mass law...
    http://blog.mass.gov/revenue/curren...sales-tax-for-cellphone-bundled-transactions/

    In short, you are supposed to pay tax on the MSRP value of the device, in ALL cases. The vendor, however, can elect to pay a portion of the tax.

    I am guessing that some vendors do pay that portion of the tax while others leave it solely on the consumer.
     
  24. Applejuiced macrumors Westmere

    Applejuiced

    Joined:
    Apr 16, 2008
    Location:
    At the iPhone hacks section.
    #24
    Yes, the law and the many ways retailers have it in their system is different and sometimes you can get away with a loophole or error on certain merchants systems.
    Their POS systems are programmed to add tax to the purchase amount and for those rare cases they would have to be preprogrammed different to charge tax on a $199 purchase as if it was priced at $650 and so on.
    I know in MA about a year back I paid tax on radio shack only on the $199 5S subsidized price and was pretty happy about it:) $12 is better than $42 in tax:D
     
  25. lordofthereef macrumors G5

    lordofthereef

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    Nov 29, 2011
    Location:
    Boston, MA
    #25
    Read the addendum. I added to my post. Retailers can now choose to pay that portion. But it is still taxed.

    I doubt it's a loophole. It's just those establishments are fine with paying that additional tax while others are not.
     

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