Sales Tax

[Detlev]

Anyone notice that Apple charges sales tax on the full price of the iPhone, $499.99 and not the "discounted" price of $299.99. What makes this interesting is that if they are to do this they are required to show the discount on the receipt but they do not—at least on the customer copy. They do on their copy. Nice way to play the system, no?

 

[Cobra2001]

Does AT&T do the same thing?

 

[aethelbert]

Sales tax is probably being billed to AT&T, seeing as they're paying for the majority of the phone's cost.

 

[gibby320]

There is a distinct difference between a discount and a subsidy.

The phone truly COSTS 499

So here is how the tax would be calc'd

+499 (iphone)
+Applicable Tax (MA is 5%= 52.40)
-200 ATT subsidy
_______________
351.40

 

[Rucka321]

We bought 2 iphones. The Apple store in Burlington, MA charged the MA sales tax on the full ($599) price, the AT&T store in Waltham, MA only charged the MA sales tax on the $299 price.

So buy from the AT&T stores if you are able.

 

[MidnightMarmot]

I was wondering the same thing and am glad I found this thread for the answer; I'm out $16.50 because of this... oh well...

8.25% tax here in CA
8.25% on $499 = $41.17
8.25% on $299 = $24.67

sneaky!

 

[wowotoe]

I bought mine at Brea, CA and the sales tax is 7.75% ($30.92) for 8GB.

 

[Diode]

I got charged the tax at the 299 rate for a 16GB at the AT&T store.

 

[jniehage]

sales tax explained

follow this link to publication #120 toward the bottom of the page. It explains why we pay sales tax on the full retail price of cell phones if purchased with a service contract.

www.boe.ca.gov/sutax/staxpubsn.htm

 

[spaceballl]

I bought from the ATT store on 34th st in NY and they only charged sales tax on the 299