Iphone 3G S at $199 but taxed at $599?

[darthcees]

So I just came back from a At&t store here in San Fernando CA and pre-ordered a iPhone G3 S 16GB. I had to pay up in front the $199 price. So in my mind I thought, "$199+9.25%= $217.40" but when they gave me the grand total it was $254.41? Eh? So I told them what gives? They tell me they have to tax me at the $599 price. So on my receipt it says

Subtotal: $199.00
Tax : 27.84%
Total : $254.41

So now I'm wondering did anyone else who lives in CA get taxed this way too.

 

[shutter]

I have seen a thread on another forum and it seems that CA residents are charged tax on the unsubsidized amount. The CA state Gov't is a greedy bunch. I paid 7% on the actual amount the charges me.

 

[darthcees]

Greedy bunch indeed

 

[JustinHorn]

What about the $18 att BS fee? I guess that goes right on the next bill?

 

[Libuff]

thats some strange tax laws... in NY were only taxed on what we spend... not what we could be spending on an item... i'd speak to Schwarzenegger about that...

 

[darthcees]

If it were only that easy

 

[darthcees]

What about the $18 att BS fee? I guess that goes right on the next bill?

Yeah I think it does go on the next bill.

 

[Leanna Lofte]

Wow. I didn't know this was only a CA thing. I knew about this from when I got the 3G last year. I was told that AT&T didn't subsidize the tax, so it was put on the buyer. I assumed this was normal :/

 

[darthcees]

Wow. I didn't know this was only a CA thing. I knew about this from when I got the 3G last year. I was told that AT&T didn't subsidize the tax, so it was put on the buyer. I assumed this was normal :/

The buyer always suffers with at&t

Also no MMS or tethering at launch?

I hate you at&t!!! You win this round. Just wait til next year...your contract ends with apple

 

[anon4669969]

Ridiculous isn't it. I'm from CA as well.

 

[IamGov#IM]

As sales tax is State mandated it is governed by the feds. Check into the additional taxes charged. I bet you can write them off as a tax credit at year end!