IPhone sale tax

[iMore Question]

AT&T has a deal with a swap of your old phone for the iPhone7 but a huge sales tax. Taxes on swaps have been around for a long time so shouldn't iPhones follow the same rule that the tax is on the difference in value?

 

[dchandler]

No, tax is on the retail price of each iPhone and tax can't carry over. When you upgrade you are getting a new device that AT&T had to pay taxes on so they are just getting it back so to speak.