Depends on the State. AppleCare+ is considered an 'insurance' plan in CA and is not subject to tax. Basically you don't pay sales tax on Services as its not an actual good.
Exactly - in my state you do pay tax on it but it is a state by state thing.
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Yes, but it's not like you're paying the full cost of AC+ each time you upgrade. After one year when it's time to upgrade, you'll have paid only half the cost of AC+ in the form of monthly payments.
If you were to pay full retail for the phone + AC+ and sell your phone after 1 year, you could get 1/2 the AC+ refunded to you so it works out to be the same.
Scenario 1 - AiUP with upgrade after 1 year
128GB iP7+ = $41.58 x 12 = $499 + sales tax = $550
Scenario 2 - full retail selling after 1 year with refund of 1/2 AC+
$1058 - $68 refund of 1/2 AC+ = $990
$990 - $550 = $440
Thus the difference at 1 year is $440. If you can sell your 128GB iP7+ and net more than $440 for it, you come out ahead. But of course, you have to sell it and deal with the time, hassle and risk of that.
Right now a 1 year old Good-Mint condition Verizon 64GB iP6s+ (which is the equivalent mid-range storage size) is selling for about $475-$490 on swappa. After taxes/fees/shipping with insurance you would net $430-$445 or an average of about $440.
So it works out to be the same 1 year cost since Apple will refund you a prorated amount of the AC+. The difference is with the AiUP you get:
1) interest free financing; and
2) hassle free upgrades.
Wrt #2, if you sell on ebay or swappa, not only do you have to take pictures to list it, respond to offers, monitor the listing, pack it up and ship it, the buyer has 6 months to dispute the charge.
There is really no difference in price b/t the AiUP and buying full retail + AC+. The difference is simply in whether or not you need/want interest free financing and hassle free upgrades.