Samsung rep admits they are trying to rip me off

[jejb]

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

But the rep said their system was ripping me off.

 

[mustang7757]

But the rep said their system was ripping me off.

I think they should of charged you the tax for the total amount your buying, they did when I purchased my s22U they charge 36.13 tax on the 581.47 which my state is 6.6%

 

[trucksmoveamerica#AC]

I think they should of charged you the tax for the total amount your buying, they did when I purchased my s22U they charge 36.13 tax on the 581.47 which my state is 6.6%View attachment 344656

Depends on state. Some states charge tax on the retail price.

 

[mustang7757]

Depends on state. Some states charge tax on the retail price.

Are they allowed ?

 

[Mooncatt]

Are they allowed ?

State sales taxes are a state issue, so they are allowed if that's what they set up in their laws. There's no federal law or constitutional restriction on that issue that I'm aware of.

 

[13Flossy]

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?

Well I can't agree with your thoughts on taxes regarding this particular subject.

Because I bought two Samsung phones from Samsung direct and was only charged the tax on what I actually paid AFTER the trade in WAS DEDUCTED.

I paid $600 so I paid taxes on $600 (JUST UNDER $43.00) I didn't pay the taxes on the 12 or 1300 Original phone cost.

I'm in Florida if that makes a difference, but I'm just saying.

 

[BerryBubbles]

Well, I think that regardless of what the Sales Rep said or how we all feel about what is fair, it looks like Arkansas does require Sales tax on trade-ins.

 

[13Flossy]

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

Just not true. I know from buying two phones myself from Samsung direct. I've only ever paid the tax on whatever cash came out of my pocket for the phone after trade in.

 

[mustang7757]

State sales taxes are a state issue, so they are allowed if that's what they set up in their laws. There's no federal law or constitutional restriction on that issue that I'm aware of.

Looks like a grey area to me , but if that's the case then OP unfortunately they hit you taxes from full price and probably can't do anything about it .

 

[Mooncatt]

Just not true. I know from buying two phones myself from Samsung direct. I've only ever paid the tax on whatever cash came out of my pocket for the phone after trade in.

You are lucky, as Florida does appear to allow a tax credit on trade in's. But as stated now multiple times, it's dependent upon the state, and not every state allows this. It would seem Arkansas (the OP's state) does not. I tried to look that one up, but the results were all about vehicles and not general consumer products like phones. It's unlikely a retailer would screw that one up because sales tax compliance is easily checked.

 

[BerryBubbles]

You are lucky, as Florida does appear to allow a tax credit on trade in's. But as stated now multiple times, it's dependent upon the state, and not every state allows this. It would seem Arkansas (the OP's state) does not. I tried to look that one up, but the results were all about vehicles and not general consumer products like phones. It's unlikely a retailer would screw that one up because sales tax compliance is easily checked.

I did find the Arkansas Sales tax regulation & posted it above in #27. General trade-ins are taxable.

 

[Mooncatt]

I did find the Arkansas Sales tax regulation & posted it above in #27. General trade-ins are taxable.

Oop, thanks.

 

[BerryBubbles]

Oop, thanks.

It's okay, I don't think anyone noticed!

 

[Mooncatt]

It's okay, I don't think anyone noticed!

I remember seeing it now, but I hadn't had my coffee yet. XD

 

[BerryBubbles]

I remember seeing it now, but I hadn't had my coffee yet. XD

I know the feeling...

 

[trucksmoveamerica#AC]

Just not true. I know from buying two phones myself from Samsung direct. I've only ever paid the tax on whatever cash came out of my pocket for the phone after trade in.

Well look up the state tax law in your state, give it to Samsung and see what they say, but their reps are clueless so good luck lol. . That is one of your options. As you see, numerous times every state is different, maybe Samsung's system screwed up and overcharged. Get the state tax law and present it to Samsung.

My state just charges tax on the amount of purchase, not retail, but that's not the case in every state.

 

[donm527]

I did not go through with it.


Arkansas.

"Arkansas (AR) Sales Tax Rates by City" https://www.sale-tax.com/Arkansas

Wow. Up to 12% sales tax in some cities. Article said they just made rate changes last year. Maybe it went up..... you know how cities love to try to rein in those areas "outside of town" to get them to pay. I'm in Florida myself.

 

[B. Diddy]

As far as I can remember, I've always had to pay tax on the full price of an item when there's a rebate involved. It may be important to note that these reduced prices for phones (at least when they just recently came out) are almost never considered a "sale," but rather more like an instant rebate.

As an aside, it's almost like when you go to a restaurant and get a deal for a free entree -- one should always calculate the tip based on how much the bill would've been if that entree were counted, rather than the bottom line.

 

[Gary02468]

Well I can't agree with your thoughts on taxes regarding this particular subject. [...]
I'm in Florida if that makes a difference, but I'm just saying.

Yes, of course the state matters. Each state sets its own rules for sales tax. I commented that most states charge tax on the pre-trade-in price for cell phones, and that's correct.

 

[1raygin]

I live in Illinois and I had to pay tax on the full retail price of the phone not the reduced price minus the trade in. I still feel like I got a great deal because I got a $800.00 credit for a S7 plus that was collecting dust in a drawer.