Target Mobile (aka Radio Shack)

[KeepCalmPeople]

This may have been discussed before, but...

I upgraded one of my lines to a 16GB 4S over the weekend at my local Target. Upon reviewing the receipt in more detail (always after the fact... when will I learn?) I noticed that while I paid $99 for the phone (as expected), I paid sales tax of 8.25% on the $799.99 full retail price of the phone! Now, the unlocked phone can be bought here for $549.99, so basically I paid additional sales tax on $250, amounting to $20+.

Not really sure why Target Mobile/Radio Shack does this. The money is going to California, unless there is some shady accounting going on. Perhaps Radio Shack sells a 3rd party warranty based on the value of the phone, so they mark it up?

I should have bought direct from Apple or AT&T. I complained and they gave me a Target gift card to compensate me, but it's a bit devious.

 

[Interstella5555]

This may have been discussed before, but...

I upgraded one of my lines to a 16GB 4S over the weekend at my local Target. Upon reviewing the receipt in more detail (always after the fact... when will I learn?) I noticed that while I paid $99 for the phone (as expected), I paid sales tax of 8.25% on the $799.99 full retail price of the phone! Now, the unlocked phone can be bought here for $549.99, so basically I paid additional sales tax on $250, amounting to $20+.

Not really sure why Target Mobile/Radio Shack does this. The money is going to California, unless there is some shady accounting going on. Perhaps Radio Shack sells a 3rd party warranty based on the value of the phone, so they mark it up?

I should have bought direct from Apple or AT&T. I complained and they gave me a Target gift card to compensate me, but it's a bit devious.

Not sure why they reversed it, CA residents pay sales tax on the unsubsidized price.

 

[Jayohwhy]

tax on the unsubsidized price of the phone is standard practice in California. If you want tax on the subsidized price you need to go to NV or HI.

I too am surprised that they refunded you.

 

[PM-Performance]

Radioshack also tacks on about $75 to early upgrade prices. I had to fight that when I returned my 5 the other week to get another 4s. I had no choice and no one else has 4S's anymore around me.
Very shady tactics by them but I got the price match after I complained quite a bit to the DM

 

[KeepCalmPeople]

My point was not that I paid tax on the unsubsidized price - I know that is the law. My issue is that Radio Shack/Target Mobile claim that the unsubsidized price is $799.99, and I had to pay sales tax on that, when the price should be $549.99.

 

[Southernboyj]

My point was not that I paid tax on the unsubsidized price - I know that is the law. My issue is that Radio Shack/Target Mobile claim that the unsubsidized price is $799.99, and I had to pay sales tax on that, when the price should be $549.99.

RadioShack charges a $50 premium on all iPhone unsubsidized sales.

For example a base 16GB is normally $649 but at Radioshack it's $699.

Now as far as the 4S being $799, I'm not sure. You should call their Customer Care line.