[SoCal Addict]

So just ordered the 9650 online with NE2, got it for $49.99 plus had to pay a tax of $44.62! They're sub note states that California tax is based on the full retail value of $509.99! WTF!??

I hate this state more and more....and we're still in massive debt

[madisonjar]

time for a name change?

[whoopsazz]

ouch..... that sucks

[bodeb]

So just ordered the 9650 online with NE2, got it for $49.99 plus had to pay a tax of $44.62! They're sub note states that California tax is based on the full retail value of $509.99! WTF!??

I hate this state more and more....and we're still in massive debt

Time to join the exodus and move to another state!

[Soxeye]

same here, tax was nearly the same amount as the phone. gotta love ca.

[jazzyfresh]

Doesn't California also charge a stocking fee? What a nuisance!

[saintj]

Thats just insane. But its still cheaper then I would pay

[papped]

Err, this isn't anything new...

[Slingbox]

Hit Nancy with her health care gabble & fire her

[CarFan]

Err, this isn't anything new...

True. this is an article on the subject from 2005. Consider yourself lucky you got the phone for 50 bucks. I paid 220 for a 1 year upgrade.
California Taxes Cell Phones on Real Value, Not Reduced Price

[papped]

That's usually why I prefer to buy off the resellers on ebay or used.

Even if the price is identical (which usually it's lower than Sprint), no sales tax, plus usually there's cashback.

[he.pennypacker]

Time to join the exodus and move to another state!

OR one can just take a road trip to Vegas, get a buffet in and some gambling. Then go to best buy and get the phone without a rebate and ditch this ridiculous CA tax.

[SMUAlien]

I moved out of California 4 years ago and I will never ever be back. Sorry you have to deal with that, it's one of the 109832 reasons I moved after only being there 2 years.

[Slingbox]

OR one can just take a road trip to Vegas, get a buffet in and some gambling. Then go to best buy and get the phone without a rebate and ditch this ridiculous CA tax.

+1
Nevada is loving CA Tax rate their bringing in tons of $$ & businesses etc from it.
The relocation of Silicon Valley to Nevada will make it complete lol

[esalonia]

How did you get it for 50?

[firebox40dash5]

Time to join the exodus and move to another state!

I'd think a Texan like you would know better than to say that.

Yep, shoulda taken the road trip and given your money to another state. Oregon welcomes your money, so long as you do your business and leave, and don't drive 10 under in the left lane!

[cbreze]

I had to pay tax of about $44 also, and I'm in AZ. I thought on-line orders were exempt from taxes, guess not.
We just voted to tax ourselves another 1% because we're in massive debt also.

[Ari846#CB]

Someone already said that this sucks, but I have to echo that. In general, if a tax or shipping charge cost almost as much as the product itself, that's a ripoff.

[papped]

Someone already said that this sucks, but I have to echo that. In general, if a tax or shipping charge cost almost as much as the product itself, that's a ripoff.

This is fairly standard practice. Generally speaking if you buy a car and have a couple thousand dollars in rebates, you still get taxed on the pre-rebate price.

[firebox40dash5]

This is fairly standard practice. Generally speaking if you buy a car and have a couple thousand dollars in rebates, you still get taxed on the pre-rebate price.

Sure, but what about the $200-300 of the discount that's not a rebate, it's a carrier subsidy?

If I buy a car that has a $25k MSRP, but I pay $18k because the dealer gets a $5k rebate and then I haggle with them... I sure wouldn't want to pay taxes on $25k.

[papped]

Sure, but what about the $200-300 of the discount that's not a rebate, it's a carrier subsidy?

If I buy a car that has a $25k MSRP, but I pay $18k because the dealer gets a $5k rebate and then I haggle with them... I sure wouldn't want to pay taxes on $25k.

Haggling is lowering the price paid directly, not the same thing as offseting a pre-determined discount (subsidy) offset with a monthly contract. It's not the same thing.

If your "haggled" price was reduced because of a subsidy the dealer was offering, which was offset by some sort of monthly requirement, rest assured you would be paying taxes on $25k.

[papped]

Also this is about how much tax the government is expecting from sales of these phones, NOT just what Sprint decides to charge you...

There's a huge difference between those two. Similar to rebates, I guarantee the government probably views subsidized phones as being sold at MSRP in terms of taxes.

Feel free to contact someone if you want to clarify that.

[firebox40dash5]

It's been a while since I bought a phone outside OR, but I sure don't recall paying tax on more than the purchase price (the money that actually changed hands) when I bought phones in MD and NC.

But look at the bright side... by this time next year, you'll probably be paying taxes on the full retail price, and they'll send you a 1099 to claim the discounted amount as income.

[papped]

Yeah the tax systems are completely different state to state (even if they weren't, the amount is different anyways).

Daily Kos: Sales Tax on Full Retail Price in California

In other words, Sprint isn't really the one to blame here. They're not pocketing this.

[SoCal Addict]

How did you get it for 50?

$249 with a 2 year contract - $100 for ordering online - $100 waiting two years to upgrade the phone = $50 (on vzw)

I'm mov'n to Texas or Nevada. Arizona is turning into Cali (financially) and Oregon wants the business but not the outsiders. Nevada doesn't have state tax does it?