Tax paid on $299 iPhone for $499 iPhone?

[madcran]

Hey all, sorry if this was brought up before, but I just checked my Apple Store receipt and I paid $38 for tax on my $299 16GB iPhone in San Diego, CA (7.75% tax). :err: By my calculations, $38 of tax translates to a $499 purchase. I know the phone is $499 for non-upgradable plans, but is this right? Can they charge you more tax than the products sold? I think this is a load of crap, but you know how these companies like to nickel and dime us. Don't get me wrong, I love Apple and I don't mind paying for the new iPhone because I love it, but I just wonder if this is legal. Thanks for any comments on this, I'm surprised no one has complained online yet.

[tomhayes]

Hey all, sorry if this was brought up before, but I just checked my Apple Store receipt and I paid $38 for tax on my $299 16GB iPhone in San Diego, CA (7.75% tax). :err: By my calculations, $38 of tax translates to a $499 purchase. I know the phone is $499 for non-upgradable plans, but is this right? Can they charge you more tax than the products sold? I think this is a load of crap, but you know how these companies like to nickel and dime us. Don't get me wrong, I love Apple and I don't mind paying for the new iPhone because I love it, but I just wonder if this is legal. Thanks for any comments on this, I'm surprised no one has complained online yet.

HMM, your right. I thought it was that $26 dollar activation fee .

I know sometimes you have to pay tax on the full retail value of the item and not the actual price. DirecTV worked like that - so even though you got the receiver for $200 cash they booked the sales as $400 with a $200 discount on future service.

I dunno.

My receipt says:
Sub-Total $ 299.00
Tax@7.75% $ 38.67
Total $ 337.67

[madcran]

HMM, your right. I thought it was that $26 dollar activation fee .

I know sometimes you have to pay tax on the full retail value of the item and not the actual price. DirecTV worked like that - so even though you got the receiver for $200 cash they booked the sales as $400 with a $200 discount on future service.

I dunno.

My receipt says:
Sub-Total $ 299.00
Tax@7.75% $ 38.67
Total $ 337.67

Ya, after searching I found this: http://kttns.org/ji2z I guess it's California law to require payment for the "retail" price on a device. Oh well, I don't see Arnold changing the law because that means less taxes and well California already doesn't do well with the taxes the get right now.