I recently bought a smart phone here in California and was shocked at the sales tax charged. It was an HTC Incredible with Verizon service and after the "new every two year" deal and some rebates, the phone cost about $50. However the sales tax was based on the smart phone MSRP of over $500! So that meant I paid about $45 in tax instead of $5.  What a rip off!!

Does that seem right? Does that happen in your state also?

Who do you think ends up with all that tax, the state or is Verizon pocketing some of it?

Any experienced protestors ready to jump on the band wagon with me and stop this rip off?

Tony Cannon
Realtor and Broker
760-603-9823
tonycannon@roadrunner.com
www.NorthSanDiegoHomes.us

 
Post is included in group: Realtors®

1 Comments on Sales tax on your smart phone. Did you get ripped off?

SEP
24
2010
859,452 Points 8 Featured Posts Outside Blog Called Shot Master

Tony, I'm not sure how this works in other states, but in California, we are charged the sales tax on the "pre-discount" price for many things, not just cell phones. My guess is that the FTB collects the surplus tax, not the businesses...but that is purely a guess. :)

Leilani
3:09am • #1


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Tony Cannon - Real Estate Oceanside Carlsbad

Oceanside, CA

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