Tax paid on $299 iPhone for $499 iPhone?
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.
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
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).
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
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.