vB Easy Archive - State Tax on phones (cost)

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State Tax on phones (cost)
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Posted by: -X-

Im just curious if its Michigan or whatever it might be. Are we supposed to charge sales tax on the cost of the phone? (ex. free 6010, only thing customer pays is the state sales tax, which a customer would pay $4.86 in MI)

Reason Im asking is when I worked for RadioShaft there was no tax on the phones..
(ex. Free nokia sprint/vzw, customer paid nothing)

Thanks

Posted by: ivwshane

In CA it's tax on the full retail amount, even if it's a free phone (**** greedy state).

Posted by: Mr_Detroit

Im in MI to (premier agent) and we have to charge tax on OUR cost if equipment is discounted. If outright purchase than tax is charged on sales price.

I would also like to know what its like in other states. As well as if it applies to company owned locations.

Posted by: makhay

we re a corporate store... you only get taxed on what you are purchasing... ie, free phone... you pay 0 tax

Posted by: SuxBeingU

My guess would be that theya re making so much money on the back end its easier ti just "eat" the extra few dollars than hassle the customers with it.

I do the same thing here. I charge tax on what they but adn just make up the rest when its time for quarterly taxes.