OP may be from California. They tax on the full retail value here, which is $650ish(16 GB is $600 so I'd assume $50 more for 32?). So 9% of that, and you're right around $300ish. One of the negative perks of living in this great state.
As for the original post, I'm having a hard time understanding what is going on based on what was typed. They sent you the wrong GB model, you returned it, they sent the correct one at which point they charged you. It became faulty, so you sent it back and am now waiting for the new one? I don't see the issue here other than it does suck that you got a lemon.. but VZW isn't going to refund you the money if you intend on purchasing and keeping the phone. If you want your money back, you'd have to return the phone and cancel your upgrade.