Sales Tax on Cell Phone!!!! | FerrariChat

Sales Tax on Cell Phone!!!!

Discussion in 'Technology' started by JamesH, Jan 11, 2004.

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  1. JamesH

    JamesH Formula Junior

    May 11, 2001
    268
    San Carlos, Californ
    Full Name:
    James Hom
    #1 JamesH, Jan 11, 2004
    I recently purchase a new cell phone and resign a 2 year contract with Verizon. The phone only cost me 59.99 but they charged me sales tax for the full retail price of the phone, which they said was 359.99. I ended up having to pay 29.70 for tax on a 59.99 phone. When I called customer service, they told me that they are required by the city/state/government to charge me tax on the full retail price of the phone. Whats up with that? Does anyone know if this is legit. Same thing happen to my friend with AT&T. Is this really legal?
     
  2. Tyler

    Tyler F1 Rookie

    Dec 19, 2001
    4,274
    dusty old farm town
    Full Name:
    Tyler
    #2 Tyler, Jan 11, 2004
    That sucks! I have no idea what the law is on this. I had a similar occurance but had forgotten about it. One of the local grocery stores(national chain) will charge sales tax on items full price even if you have a 100% discount coupon. I remember I had gotten a coupon for a free bar of Dove soap and when I dropped by the store to pick it up they charged me sales tax for the full purchase price. I thought it was odd at the time, confrimed with several others that have experienced the same at this store and then totally forgot about it. Thanks for the reminder! I hope this question gets a good answer here.
     
  3. Michael

    Michael Formula Junior

    Oct 29, 2001
    493
    Nevada
    Full Name:
    Michael
    #3 Michael, Jan 11, 2004
  4. JamesH

    JamesH Formula Junior

    May 11, 2001
    268
    San Carlos, Californ
    Full Name:
    James Hom
    #4 JamesH, Jan 11, 2004
    Good article Michael. Thanks. So, in reading this article, on the bottom of page two, 1st column, it states "Under both California and Texas authorities, the vendor ends up paying the sales tax on the original retail price of the telecommunications equipment, and cannot directly pass on the cost of the tax to the customer". Does this mean I got screwed?
     

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