iPhone sales tax

[Anthonyiamador]

Ok quick question, at checking out through the AT&T website, it said estimated sales tax for iPhone 6 16gig would be 99.00. When I do the Math sales tax in California is 8.25, which should make the tax only 55.00? I don't get it. The phone itself is 676.00...right?
,

 

[HankAZ]

Ok quick question, at checking out through the AT&T website, it said estimated sales tax for iPhone 6 16gig would be 99.00. When I do the Math sales tax in California is 8.25, which should make the tax only 55.00? I don't get it. The phone itself is 676.00...right?
,

I can’t speak to the specifics of California (don't live there), but the sales tax thing is wonky. Some states require tax on the full sale price, others on the actual price paid, etc. And some states have different rates for different things.

The base price of the iPhone 6 should be $649, $749 and $849 (depending on storage configuration). The 6 Plus is $100 more at each step.

 

[anon(4698833)]

I'm going to guess that was the sales tax + $40 service fee...

 

[Anthonyiamador]

Well it showed it as sales tax and zero fees, I get all fees waived with my employee discount through my work. I'm hoping that was just a high estimate and not really the tax.

 

[HankAZ]

Well it showed it as sales tax and zero fees, I get all fees waived with my employee discount through my work. I'm hoping that was just a high estimate and not really the tax.

I get mine waived, as well. However, the email showed the charge. I will have a customer service rep waive it (have had to do this before). But the upgrade fee is not charged by Apple - it was just reporting what the fee will be. It will appear on your wireless bill, if it is going to appear anywhere.

 

[Anthonyiamador]

I wish I would have took a picture of the page, I used the att next upgrade so there shouldn't be ANY fees right?well going down the list it said: upgrade fee 0, estimated sales tax 99.00(due today) then it showed my monthly bill.

 

[HankAZ]

I wish I would have took a picture of the page, I used the att next upgrade so there shouldn't be ANY fees right?well going down the list it said: upgrade fee 0, estimated sales tax 99.00(due today) then it showed my monthly bill.

I don’t think there are any upgrade fees for Next. But I know that you have to pay sales tax on the FULL PURCHASE PRICE for the Next plan, regardless of what your state does for 2-year contract upgrade pricing. But $99 sounds like a lot for tax.

What is your sales tax rate? $99 on a $649 purchase is like 15.25%. OUCH!

 

[Anthonyiamador]

Full retail would be 649. Sales tax in ca is 8.25. Still should only be around 55..

 

[HankAZ]

Full retail would be 649. Sales tax in ca is 8.25. Still should only be around 55..

I wouldn't get too worked up about it yet. The "out" is "estimated" tax. Wait and see what the actual charges are, and then question/dispute it then. Lots of strangeness out there tonight.

 

[Anthonyiamador]

I hear ya, thanks!

 

[HankAZ]

I hear ya, thanks!

No problem. Good night/morning.

 

[sau124]

agreed - lot of bugs will show up on the websites as they are not used to this influx of orders. Wait for the official invoice and then confirm the charges. One more reason to order via Apple.

 

[Dementius]

I'm glad I'm not alone in this. It shows $108 tax for mine. It appears that the estimated tax is adding the monthly payment and the actual device connection fee together and then multiplying that by the number of months (42.50/month + 25/line=67.50 x 20 months =$1350 for the 128gb 6) so taxing me on a $1350 full retail price according to the email. Hoping that changes before the device ships or I'll be looking forward to a lengthy phone call.

 

[hammerandnails]

make sure to take into account the one time activation fee.

 

[Anthonyiamador]

I spoke to a representative. They put me on hold and "looked into it" and said that it should go down yet can't explain either. This is what I found in the fine print:

***For preorders, charges will be processed on date of shipping and will include actual, applicable taxes, fees, and surcharges, which may vary from the quoted estimate.

So I'm depending on it to go down for sure..

 

[Anthonyiamador]

make sure to take into account the one time activation fee.

With next there is no "fees"

 

[Anthonyiamador]

Ok quick question, at checking out through the AT&T website, it said estimated sales tax for iPhone 6 16gig would be 99.00. When I do the Math sales tax in California is 8.25, which should make the tax only 55.00? I don't get it. The phone itself is 676.00...right?
,

Update, order processed and tax came out to be only 49 dollars! Score!

 

[scorpiodsu]

Don't worry about the tax until they actually charge you. I bought 2 of the same iphones and 1 showed the estimated tax as $54 and the other as $0. Well I got charged $54 twice.

 

[DudeThatsErin]

With next there is no "fees"

I was going to say that. I work for AT&T Wireless live chat and there are no fees and you are charged tax on the full retail cost of the device

Sent from my LG G3 locked to T-Mobile

 

[mstclair82]

just signed up at verizon and had the same issue -- took some wrangling with a supervisor (just showed up as taxes and fees to the rep). California tax on full retail value of the phone $749 fo 64gb iphone6 + $35 verizon activation fee. - added up to about $100

later:
doing more research -- looks like a $30 "upgrade fee" from verizon