Samsung rep admits they are trying to rip me off

[jejb]

Thought this was interesting. Was all set to buy a new S22 Ultra direct from Samsung last night, trading in my N20U. Got to the "pay me" page and was kind of surprised to see them wanting to charge me $135 in tax on a $399 purchase. So I started the following chat session. Lines that start indented are the rep's responses.

Makes it kind of hard to do business with them when they admit to ripping me off! Does anyone know how to get around being overcharged for taxes like this when working a trade with Samsung?

EDIT: Indent didn't work. Rep responses are italicized now.

08/05/2022

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I am trying to place an order for an S22 Ultra. Subtotal is $399.99 but tax is $135.85!! Why is the tax so high?

Okay I understand that no worries I will assist you for this till the last step.

As I want to let you know that the Tax is may vary form state to state also it depends on the government

Samsung does not charge you for the tax also Samsung provide you the free shipping on the product

That's true. But no state has 30%+ sales tax.

Tax should be around $38. So it's $100 too high.

As I want to let you know that also your tax will be counted on the device on the original price of the product that tax will not count that you are trading any device if there is any discount form the company so it may not counted in the tax.

Because goverment apply tax on the market price of the device

No they don't. If I trade in a car on a new car, I only pay the tax on the difference. Same thing here.

I understand that but I also do not have rights for this that I can change it

Well, I'm not going to be overcharged for taxes. Is there someone that can adjust this to the correct amount?

I understand that but Samsung does not charge you for this. No it can be corrected non of my colleague can adjust this amount

Samsung is charging me for this. I'm on Samsung's website buying a Samsung product.

I know they have to remit the tax to the state, but they are not going to over remit either.

I understand that but I also do not have rights and access for this as the cart gets build and we move to make the purchase so it shows the value of the cart

Due to which it is system generated and also we are not able to change it.

So the customer is just suppose to put up with being ripped off because the system has a bug?

Yes that is correct I hope I would be able to do anything in this.

But the tax amount can not be changed

Also if you select the instore pick up it will take the tax

LOL! Well, at least you're being honest that your system is ripping me off. Wow.

There are no stores near me.

I understand that I am putting my self on your position due to which I am able to understand you in this.

 

[Gary02468]

Oh come on. This isn't an admission of anything. The rep was simply unfamiliar with the slang phrase "ripped off". And their job was to say whatever would make you go away quickly so they can move on to the next customer.

And the rep is correct that Samsung doesn't set the tax policy. The rules may be different for car sales, but for consumer electronics, most states require tax collection on the full price of the device; the trade-in is considered a separate transaction. All companies do it that way, not just Samsung. Why would they even want to overcharge you on the tax when it just gets passed along to the state government?

 

[trucksmoveamerica#AC]

Thought this was interesting. Was all set to buy a new S22 Ultra direct from Samsung last night, trading in my N20U. Got to the "pay me" page and was kind of surprised to see them wanting to charge me $135 in tax on a $399 purchase. So I started the following chat session. Lines that start indented are the rep's responses.

Makes it kind of hard to do business with them when they admit to ripping me off! Does anyone know how to get around being overcharged for taxes like this when working a trade with Samsung?

EDIT: Indent didn't work. Rep responses are italicized now.

08/05/2022

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Mobile support sent specific content you can only see in chat

Question before I buy

We’re happy to help! One sec while I check our experts’ availability...

Hi! You're with an Expert now.

Hello, Welcome to Samsung������. I am Abhishek your Pre-sales Expert let me help you with the best experience with Samsung today. May I know your Name to serve you better.������

I am trying to place an order for an S22 Ultra. Subtotal is $399.99 but tax is $135.85!! Why is the tax so high?

Okay I understand that no worries I will assist you for this till the last step.

As I want to let you know that the Tax is may vary form state to state also it depends on the government

Samsung does not charge you for the tax also Samsung provide you the free shipping on the product

That's true. But no state has 30%+ sales tax.

Tax should be around $38. So it's $100 too high.

As I want to let you know that also your tax will be counted on the device on the original price of the product that tax will not count that you are trading any device if there is any discount form the company so it may not counted in the tax.

Because goverment apply tax on the market price of the device

No they don't. If I trade in a car on a new car, I only pay the tax on the difference. Same thing here.

I understand that but I also do not have rights for this that I can change it

Well, I'm not going to be overcharged for taxes. Is there someone that can adjust this to the correct amount?

I understand that but Samsung does not charge you for this. No it can be corrected non of my colleague can adjust this amount

Samsung is charging me for this. I'm on Samsung's website buying a Samsung product.

I know they have to remit the tax to the state, but they are not going to over remit either.

I understand that but I also do not have rights and access for this as the cart gets build and we move to make the purchase so it shows the value of the cart

Due to which it is system generated and also we are not able to change it.

So the customer is just suppose to put up with being ripped off because the system has a bug?

Yes that is correct I hope I would be able to do anything in this.

But the tax amount can not be changed

Also if you select the instore pick up it will take the tax

LOL! Well, at least you're being honest that your system is ripping me off. Wow.

There are no stores near me.

I understand that I am putting my self on your position due to which I am able to understand you in this.

States do taxes on phones differently. This isn't Samsung, it's the states. Go to apple, Motorola, Verizon, T-Mobile, At&t, all of them and they will do the same thing. It's not Samsung screwing you, write your legislature.

Reference to cars, yes you pay tax on the difference as that's how it's set up. In my state tax on cars is 2% less then everything else. Taxes are done differently in certain things. Phones you pay tax on the retail amount, even if you get it free. I hate Samsung customer service with a passion, but in this case unfortunately they are right. Your beef is with your state. For the record I don't think it's right either

 

[Gary02468]

For the record I don't think it's right either

Well, OP didn't say the states' tax policy isn't right. Instead, OP falsely accused Samsung of mis-applying the legally required tax policy.

 

[trucksmoveamerica#AC]

Well, OP didn't say the states' tax policy isn't right. Instead, OP falsely accused Samsung of mis-applying the legally required tax policy.

IMO OP apparently doesn't know how the taxes work, and that is why I told him how they work as you did. If OP knew how they work OP wouldn't have falsely accused Samsung or rep of trying to rip them off. IMO OP doesn't think the tax policy is right as they falsely accused Samsung for the policy. The OP should have said the state is ripping him off is all.

 

[me just saying]

you are wrong about the taxes nor are you being ripped off. You will pay the full tax on the full amount of the phone before the trade-in. Cars are taxed a bit different in a lot of states so that is a poor example. It is the same if you use coupons at your local grocery. You still have to pay taxes even if the item is free. But here again, I cannot speak for all states.

 

[jejb]

I get that it might be a state tax thing. But the point is when I brought up that I was being ripped off by a bug in the system, he agreed, rather than say "no, it's xyz problem". I guess bottom line it speaks to how poor their reps are. Thought it was humorous more than anything else.

But I'm still not sure it's a state thing either. I have traded for other things locally at retail stores buying brand new items and I still only pay the tax on the difference.

 

[trucksmoveamerica#AC]

I get that it might be a state tax thing. But the point is when I brought up that I was being ripped off by a bug in the system, he agreed, rather than say "no, it's xyz problem". I guess bottom line it speaks to how poor their reps are. Thought it was humorous more than anything else.

You won't get a argument from me at how bad their reps are. Samsung has the worst customer service out there, SiriusXm giving them a run for their ranking. I would almost rather pay the $250 deducible for an insurance claim then deal with Samsung customer service.

 

[wrich2005]

It does depend on the state. Many states you save the tax on trade ins while some charge you tax on the full amount.

 

[donm527]

Well I guess you were just showing how humorous his answer was about he incorrectly answered your bug question. He just answered incorrectly but did follow up that the taxes would have been the same if you did a pick up to point out it's not a bug in the calculation of the tax but what it's set at for your state.

Or he could have just have been being a smart *** responding to your ripped off/bug comment by saying it is what it is... bend over and take it and then follow up with the policy line to clarify/correct his statement lol. I've done call center work in a past life lol.

If you feel it was truly a bug and a rip off I'd cancel my order.

What state do you live in btw? $136 in taxes?? My upgrade charged me $17.5 in tax.

I wouldn't be calling Samsung to complain about the tax... if I were you I'd call my city/state representative!!

If I were being ripped off with taxes like that, I'd move out of that state, LOL!

I get that it might be a state tax thing. But the point is when I brought up that I was being ripped off by a bug in the system, he agreed, rather than say "no, it's xyz problem". I guess bottom line it speaks to how poor their reps are. Thought it was humorous more than anything else.

But I'm still not sure it's a state thing either. I have traded for other things locally at retail stores buying brand new items and I still only pay the tax on the difference.

 

[Gary02468]

I agree that customer/tech support reps can be unhelpful, but in this case I think the rep handled the interaction well. The rep provided accurate information, and then when the customer erroneously refused to accept it, the rep successfully placated the customer in order to end the discussion quickly.

 

[me just saying]

I get that it might be a state tax thing. But the point is when I brought up that I was being ripped off by a bug in the system, he agreed, rather than say "no, it's xyz problem". I guess bottom line it speaks to how poor their reps are. Thought it was humorous more than anything else.

But I'm still not sure it's a state thing either. I have traded for other things locally at retail stores buying brand new items and I still only pay the tax on the difference.

Some stores do not tax properly when it comes to trade-in but usually to benefit the customer. Some stores will tax right and when they do, there are people like you who get confused about what is right or wrong. You need to talk to your tax revenue office to find out what you should be paying. All anyone here can do is guess based on their own experiences.

 

[jejb]

If you feel it was truly a bug and a rip off I'd cancel my order.

I did not go through with it.

What state do you live in btw? $136 in taxes?? My upgrade charged me $17.5 in tax.

I wouldn't be calling Samsung to complain about the tax... if I were you I'd call my city/state representative!!

Arkansas. Yes, they are sales tax crazy here. Around 10% in town. But that is another issue. I live outside of town and should have about 2% lower sales tax. Some websites are able to figure that out, some not. Samsung is "not".

If I were being ripped off with taxes like that, I'd move out of that state, LOL!

Every state gets you one way or another. Property taxes are very low here, so it evens out.

 

[jejb]

I agree that customer/tech support reps can be unhelpful, but in this case I think the rep handled the interaction well. The rep provided accurate information, and then when the customer erroneously refused to accept it, the rep successfully placated the customer in order to end the discussion quickly.

LOL! That's one way to look at it, I guess.

 

[Mooncatt]

Phones you pay tax on the retail amount, even if you get it free.

It's not just phones. Taxes suck even when you win it free, and this reminded me of stories about people winning new cars. Only they got hit with income taxes, not sales taxes, for their "free" car.

https://www.sbnation.com/lookit/201...-is-right-contestant-gave-up-new-car-for-1500

And since the article doesn't explain it well, the short version of the reasoning is the IRS treats prizes as their equivalent market value. If you win a $20k car, it's mathematically no different than winning $20K cash and then buying the car yourself. Winning the cash is taxable, thus winning the same value car is taxable. For this same reason, better pay of your debts. If you default on a loan that the lender writes off, you'll get a nice little 1099 form where you'll owe income tax on the unpaid amount.

To bring this back to phones and sales taxes, a phone is a set amount, and taxed accordingly. It doesn't matter how you pay, the tax owed is the same. If you pay cash, pay part cash and trade, or barter with 30 chickens, the tax is the same.

 

[trucksmoveamerica#AC]

It's not just phones. Taxes suck even when you win it free, and this reminded me of stories about people winning new cars. Only they got hit with income taxes, not sales taxes, for their "free" car.

https://www.sbnation.com/lookit/201...-is-right-contestant-gave-up-new-car-for-1500

And since the article doesn't explain it well, the short version of the reasoning is the IRS treats prizes as their equivalent market value. If you win a $20k car, it's mathematically no different than winning $20K cash and then buying the car yourself. Winning the cash is taxable, thus winning the same value car is taxable. For this same reason, better pay of your debts. If you default on a loan that the lender writes off, you'll get a nice little 1099 form where you'll owe income tax on the unpaid amount.

To bring this back to phones and sales taxes, a phone is a set amount, and taxed accordingly. It doesn't matter how you pay, the tax owed is the same. If you pay cash, pay part cash and trade, or barter with 30 chickens, the tax is the same.

There are a lot of people that win big things on game shows that have to sell their winnings to pay the taxes. Gifts and winnings are taxed heavily. I think we all agree taxes suck.

 

[jejb]

To bring this back to phones and sales taxes, a phone is a set amount, and taxed accordingly. It doesn't matter how you pay, the tax owed is the same. If you pay cash, pay part cash and trade, or barter with 30 chickens, the tax is the same.

This seems to be the case. So the question may come down to, do I want to pay what I view as 33% sales tax?

But this is much different than gift taxes. I'm aware of those rules. I'm not getting something for nothing. Between the trade in and cash, I am fully paying for it.

 

[Mooncatt]

This seems to be the case. So the question may come down to, do I want to pay what I view as 33% sales tax?

...Between the trade in and cash, I am fully paying for it.

This shows your misunderstanding in viewing it as a 33% tax. You acknowledge you are paying the full amount between trade and cash, so you should also agree the tax is being based on that full amount. That isn't 33%. If you bought the top tier version that is selling for $1,600, a $135 sales tax is just over 8.4%. The Arkansas State sales tax is 6.5%, and you said your city has a 2% sales tax as well. Sounds pretty spot on to me.

 

[jejb]

This shows your misunderstanding in viewing it as a 33% tax. You acknowledge you are paying the full amount between trade and cash, so you should also agree the tax is being based on that full amount. That isn't 33%. If you bought the top tier version that is selling for $1,600, a $135 sales tax is just over 8.4%. The Arkansas State sales tax is 6.5%, and you said your city has a 2% sales tax as well. Sounds pretty spot on to me.

I don't misunderstand it, I just don't agree with it. Just like a car. If I trade one in when I buy one, I only pay the difference. Should be no different here, IMO. I already paid tax on the traded in item, so I should not have to pay it again.

But it's all pretty irrelevant. I get why they want to charge me the tax. My post was about the rep agreeing that their system is ripping me off. Come on, laugh a little. I did.

S22 Ultra 512gb is $1399. We are at about 8% tax outside of the city limits.

 

[Mooncatt]

My post was about the rep agreeing that their system is ripping me off. Come on, laugh a little. I did.

Except they didn't rip you off, but you are free to have your own opinion on that.