Tax paid on $299 iPhone for $499 iPhone?

madcranmadcran
Posted:
in iPhone edited January 2014
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). 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.

Comments

  • Reply 1 of 2
    tomhayestomhayes Posts: 128member
    Quote:
    Originally Posted by madcran View Post


    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). 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

    [email protected]% $ 38.67

    Total $ 337.67
  • Reply 2 of 2
    madcranmadcran Posts: 8member
    Quote:
    Originally Posted by tomhayes View Post


    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

    [email protected]% $ 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.
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