Sales Tax Question

[jeff1penny]

Hey Guys,
So, this is a new one to me if I've ever heard one from Verizon....I live in Mass, sales tax is 6 cents on the dollar...when I pre-ordered my phone online, I got the 32GB for $249 + the $30 upgrade fee - $100 loyalty discount, bringing my phone subtotal to $179.99. I then had a total of $9.37 in tax on the order bringing it to $186 and change, however, when Verizon charged my card, they charged it to the amount of $216. I called to figure out what happend and they are claiming that "sometimes they charge tax on the amount of the ACTUAL price of the phone", not the discount price which I paid. But my argument to them was why does my ORDER show something different...they are checking on it and are gonna call me back but I wanted to find out if anyone had info on this....are they trying to pull a fast one on me?

Thanks in advance for your help!

 

[ibcop]

Hey Guys,
So, this is a new one to me if I've ever heard one from Verizon....I live in Mass, sales tax is 6 cents on the dollar...when I pre-ordered my phone online, I got the 32GB for $249 + the $30 upgrade fee - $100 loyalty discount, bringing my phone subtotal to $179.99. I then had a total of $9.37 in tax on the order bringing it to $186 and change, however, when Verizon charged my card, they charged it to the amount of $216. I called to figure out what happend and they are claiming that "sometimes they charge tax on the amount of the ACTUAL price of the phone", not the discount price which I paid. But my argument to them was why does my ORDER show something different...they are checking on it and are gonna call me back but I wanted to find out if anyone had info on this....are they trying to pull a fast one on me?

Thanks in advance for your help!

Some states allow for the collection of sales tax based on the full retail price of the device. Obviously, Mass is one of those states - California is another.

California gets screwed in sooo many ways, they are used to it.

 

[gvillager]

As of July 2011 Massachusetts charges sales tax on the full retail price of the phone.

 

[zschutzman]

Massachusetts changed the law last June so that sales tax is calculated on the pre-subsidized, pre-rebate price of the device, so you pay the subsidized cost plus sales tax on a $600/$650 device.

 

[jeff1penny]

thanks for the researching this guys, didn't realize that. D'oh!

Ok, well I didn't argue with Verizon when they called back....they explained it to me the same way as well, good to know in 2-3 years

 

[dubge]

I just dont see how they can charge you more sales tax then what they are selling it to you for

who is getting the extra money verizon or the state?

 

[Ry]

I just dont see how they can charge you more sales tax then what they are selling it to you for

who is getting the extra money verizon or the state?

It's not going to Verizon.

Sent from my DROID BIONIC using Android Central Forums

 

[gg2005]

who is getting the extra money verizon or the state?

In this case, the Communistwealth of Massachusetts is getting the money.

For the record, I live in NH (no sales tax, no income tax)

 

[Ry]

I purchased my DROID Bionic from a Verizon Wireless store while on vacation in Maui- because they have a lower sales tax than California and they charge on the upfront cost of the phone (vs. the full retail price).

Sent from my DROID BIONIC using Android Central Forums

 

[Dunbar42]

Quit complaining, I paid $50 in tax for my 32GB S3 in California.

 

[dpham00]

Quit complaining, I paid $50 in tax for my 32GB S3 in California.

When I got my rezound less than 2 weeks after release, I paid more tax than the subsidized price of the phone.

 

[tk-093]

At least you can sleep well knowing that the extra tax California is getting is keeping them a beacon of financial stability.

Quit complaining, I paid $50 in tax for my 32GB S3 in California.

 

[Dunbar42]

At least you can sleep well knowing that the extra tax California is getting is keeping them a beacon of financial stability.

Doing my small part to pay for the $100 billion dollar LA-SF bullet train.

Seriously though the taxes on monthly service are lower in CA than when I lived in IL so I think it's a wash.

 

[solido888]

My actual charge is also higher than the receipt my preorder shows. I am in Idaho.

 

[cherylwalden]

I guess you can include these in your tax file, as when I did mine with turbotax for 2013 I included my every expense and every separate tax that I have paid.