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Sales Tax on Full Retail Price When Bought Discounted?

Average Cell User

Sep 26, 2005, 11:16 AM
So I've done a bit of research and can't think of anywhere else where when you purchase a product at a discounted price, you are charged sales tax on the full original price of your item. I recently re-enrolled with Verizon Wireless and was charged tax for the entire retail cost of the phone even though I was getting it at discount. When I got to Macy's and buy $100 shoes at 50% off, I only pay tax on $50. Why the discrepancy?

Any lawyers looking for a challenge?
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cingularfan

Sep 26, 2005, 11:18 AM
You must live in CA, it's a luxury tax on cell phones which isn't on shoes.
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wfine81

Sep 26, 2005, 11:54 AM
Thats not the case where I live at, I have been in the biz for 7 years and have never heard of any company doing this here (south market) as the previuos poster mentioned it might be a regional thing.
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cingularfan

Sep 26, 2005, 12:18 PM
it's a luxury tax in CA only, no other states do this. if you want to complain contact your senator or governator.
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GWFOX

Sep 26, 2005, 1:09 PM
Oh no no no.. It's not JUST in California. It's also in Massachusettes. In that state its called DOR Directive 93-9 "Sales price of cellular telephones sold in bundled transactions"
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texaswireless

Sep 26, 2005, 1:02 PM
Ok, you probably live in CA, where state law requires you pay tax on the retail value on ANY item sold below cost as a regular practice. Considering wireless is one of the only industries that sells an item subsidized people don't always understand the concept.

Already been challenged years ago so you won't get anywhere arguing the point.

Move to Texas where you get to pay lower taxes but have to deal with smoking in restaurants 🙂
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blue2kzr2

Sep 26, 2005, 4:53 PM
This was not the case for my cell phone, I paid tax only on the sale price (in my case $50 after my NE2 credit).

Now with my car, for which I just got a draft of the sale papers, I'm paying tax on the price BEFORE incentives. The incentive (if I got it, it's a rebate or low interest deal) would ALMOST offset the tax I pay.
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vzwemployee21

Sep 27, 2005, 5:25 PM
haha....yes lets blame vzw for california state laws. the stupidity never ceases to amaze me.
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midwest_celluser

Sep 27, 2005, 5:46 PM
😎 check out www.mywireless.org This is where you can find out who to voice your *(&%# at and why. The website is designed for your local area if you put in your zip code. Happy political polishing, you'll need it.
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