Sales tax on new phone

lewis

Fight Till You Die
Location
Hairyman
So I went to Costco to buy my wife and her mom new cell phones from the cell kiosk they have in the store. We did some shopping around on the internet and the Verizon store and found that Costco had the best deal. So we bought 2 phones for $10 each for $20 and the sales tax ended up being $18. I am not sure if they screwed up or for some reason its state law to tax on the before proce and not the promotional price? Someone learn me or did they screw up?
 

Tacoma

Et incurventur ante non
Location
far enough away
eh... I think someone screwed up. Were there any phone taxes on that bill? They can add up but I've only seen that on SERVICE bills, not hardware. 95% tax has got to be an error.
 

lewis

Fight Till You Die
Location
Hairyman
Thats what I was thinking. I looked at the receipt again and it said that originally the phone was $129 but was given $120 instant savings and the 6.85% tax was based on the $129, but thats not what I paid.
 

gijohn40

too poor to wheel... :(
Location
Layton, Utah
it sounds like they taxed you on the full amount and then you got an instant rebate which dropped the price down to what you paid... happens all the time...
 

Caleb

Well-Known Member
Location
Riverton
I don't think they owe you money. I know this is how it is all the time. If you go buy a subsidized (no rebates even) iPhone for $200, you'll pay taxes on the original $500 price. I don't know how or why it is, but I know that it's correct.
 

Cody

Random Quote Generator
Supporting Member
Location
Gastown
I don't think they owe you money. I know this is how it is all the time. If you go buy a subsidized (no rebates even) iPhone for $200, you'll pay taxes on the original $500 price. I don't know how or why it is, but I know that it's correct.

ditto.

It's kind of like when you go to a restaurant with a 2 for 1 coupon. You still tip based upon the pre-coupon amount of the bill, not the actual amount. If you don't do this, you're an idiot an an a-hole and somebody will spit in your food if the recognize you the next time.

But ya, subsidized electronics you pay tax on the amount of the unit prior to the subsidy or discount. Pretty common.
 

D94R

Member
Location
Eagle Mountain
It may be that Costco handles "rebates" in house so you don't have to deal with it. Atleast that's how it was when we bought tires. Costco took care of the mail in rebate and passed the savings immediately to me, but I still had to pay the tax on the full price. Otherwise, it would have been the same if I bought them at price, paid the tax on it, then sent out the rebate in the mail later.
 
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