Sales Tax

Discussion in 'iPhone' started by Detlev, Jul 11, 2008.

  1. Detlev macrumors 6502a

    Joined:
    Sep 16, 2003
    #1
    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?
     
  2. Cobra2001 macrumors regular

    Joined:
    Nov 5, 2007
    Location:
    SoCal
  3. aethelbert macrumors 601

    Joined:
    Jun 1, 2007
    Location:
    Chicago, IL, USA
    #3
    Sales tax is probably being billed to AT&T, seeing as they're paying for the majority of the phone's cost.
     
  4. gibby320 macrumors newbie

    Joined:
    Jun 12, 2008
    #4
    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
     
  5. Rucka321 macrumors newbie

    Joined:
    Jul 12, 2008
    #5
    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.
     
  6. MidnightMarmot macrumors newbie

    MidnightMarmot

    Joined:
    Feb 25, 2007
    Location:
    Pasadena, CA (USA)
    #6
    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!
     
  7. wowotoe macrumors member

    Joined:
    Jun 25, 2007
    #7
    I bought mine at Brea, CA and the sales tax is 7.75% ($30.92) for 8GB.
     
  8. Diode macrumors 68020

    Diode

    Joined:
    Apr 15, 2004
    Location:
    Washington DC
    #8
    I got charged the tax at the 299 rate for a 16GB at the AT&T store.
     
  9. jniehage macrumors newbie

    Joined:
    Jul 14, 2008
    #9
    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
     
  10. spaceballl macrumors 68030

    spaceballl

    Joined:
    Nov 2, 2003
    Location:
    San Francisco, CA
    #10
    I bought from the ATT store on 34th st in NY and they only charged sales tax on the 299
     

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