vB Easy Archive - Taxes on full retail price of the phone?

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Taxes on full retail price of the phone?
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Posted by: Lambert

Is it common to charge full retail tax on a discounted phone? Is this in every store?

Posted by: absolutaddicted

Depends on the state tax laws. I know in californa, the laws are crafted so that you have to pay tax on the full retail price of a phone (every carrier) not what is actually paid. The theory is that you are paying for the cost of the phone partially upfront and along with your contract.

In New Jersey, what you pay retail is what is taxed on. For example, if a phone w/new contract is 100.00, you pay 106.00 (sales tax being 6%). Sorry california is screwing you over.

Posted by: Lambert

Quote:

Originally Posted by absolutaddicted

Depends on the state tax laws. I know in californa, the laws are crafted so that you have to pay tax on the full retail price of a phone (every carrier) not what is actually paid. The theory is that you are paying for the cost of the phone partially upfront and along with your contract.

In New Jersey, what you pay retail is what is taxed on. For example, if a phone w/new contract is 100.00, you pay 106.00 (sales tax being 6%). Sorry california is screwing you over.

I havn't paid for a phone in about 4 years.

Posted by: Mango808

Quote:

Originally Posted by Lambert

Is it common to charge full retail tax on a discounted phone? Is this in every store?

Yes, as it has been mentioned above for California you pay the retail price on the phone even if it is subsidized. This is for every carrier in California to my understanding.

I remember paying $3.87 tax on a $49.99 phone that had an instant $50 in-store rebate for activating back in 2002.

Posted by: BellaDea

In Utah and Texas you pay full tax on anything in the store (except deposits).... i haven't heard any different even if it's discounted....

Posted by: strickzilla

i was in shock about teh california one...i had a customer come to hawaii and they had thier recipt faxed to us the phone was $0 dollars BUT they had to pay tax on full retail price so they paid $8 in taxes for a "free" phone/// in hawaii here its tax on teh price at teh reg. andits 4%

Posted by: Always Mobile

Back when I was in the restaurant biz, the owner of a place I worked for was an accountant (New Jersey/PA). If they put out a coupon for any money off, the taxes paid to the state were on the check before the discount was applied. Actually, I am suprised this has not yet happened with cell phone sales here considering this area wants to tax for everything. They recently tried to add additional cellular tower taxes.