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

By
Real Estate Agent with Bressi Realty Carlsbad CalBRE 01318292

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?

Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

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

Sep 23, 2010 08:09 PM