Sales Tax Overcharge

[Calibagonian]

What is the name of your state (only U.S. law)? California

I was overcharged in sales tax. I bought a phone in October 2008 with a sales tax rate of 8.75%, but I was charged over 17.5% in tax.

I asked the employee that helped me with the purchase of the phone why was I charged so much in taxes and she told me it was extra fees.

I tried to get the company to explain why I was charged so much tax and no one could tell me why.

My receipt sums it up like this:-

Sub-Total $199.00
[email protected]% $34.91
Total $233.91

I did go back in the next day and talked with another associate, who told me they cannot change the sales tax amount on the receipt.

Is their anything I can do about this. I don't think this is right at all.

 

[JETX]

Is their anything I can do about this. I don't think this is right at all.

I don't either. You can contact the state 'Board of Equalization' at:
Legal Department - Investigations Division - Board of Equalization

 

[CourtClerk]

Did you get the phone on a rebate? Because if you did, you pay the tax on the ORIGINAL price of the phone....

 

[tranquility]

have them check their math. If they won't, send a letter to their boss with the threat of "exploring the legal remedies as related to the class of those overcharged on sales tax". If they don't refund the money, forget it. It's not enough to sue over.

 

[Kiawah]

Rebate ?

Think courtclerk is on to it.

The equivalent tax you were charged is on a $399 purchase. Did you get some sort of $200 rebate, which was applied to the purchase?

 

[CourtClerk]

Think courtclerk is on to it.

Only because I had the exact same thing happen to me a few years back

 

[Calibagonian]

No Rebate

There wasn't no Rebate, no coupon or no discount on my Iphone. No deals.

Everyone has been telling me to leave it alone because it's Apple.

But, just imagine if they overcharged others who were just happy to get the phone and didn't pay attention to the sales tax charged.

 

[CourtClerk]

There wasn't no Rebate, no coupon or no discount on my Iphone. No deals.

Are you saying you paid absolutely FULL PRICE for this phone because $199 is NOT full price? What model? Where did you buy it from? Did you renew your contract?

 

[CourtClerk]

From Apple's website, if that's where the OP claims to have bought it from:

They have the IPhone 3GS listed at $199, but look at the fine print.

(2) Requires new two-year AT&T wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. Existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G should check with AT&T or use Apple - iPhone - Buy iPhone 3G to find out if they are eligible for early upgrade pricing: $299 (8GB), $399 (16GB), or $499 (32GB) with a new two-year contract. For those who are not eligible for an early upgrade or who wish to buy iPhone as a gift, the prices are $499 (8GB), $599 (16GB), or $699 (32GB). In CA, MA, and RI, sales tax is collected on the unbundled price of iPhone.

 

[Calibagonian]

I have the 3G from last year. I don't have the new 3GS. I bought the phone from apple. There is no upgrade with my phone. That was the full price of the phone at the time that I bought it October 2008.

 

[justalayman]

(1) 1GB = 1 billion bytes; actual formatted capacity less. (2) Requires new two-year AT&T wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. Existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G should check with AT&T or use Apple - iPhone - Buy iPhone 3G to find out if they are eligible for early upgrade pricing: $299 (8GB), $399 (16GB), or $499 (32GB) with a new two-year contract. For those who are not eligible for an early upgrade or who wish to buy iPhone as a gift, the prices are $499 (8GB), $599 (16GB), or $699 (32GB). In CA, MA, and RI, sales tax is collected on the unbundled price of iPhone. Service may not be available in all areas or at the signal strength, rates, speeds, or bandwidth as demonstrated. Wi-Fi Internet access required for some features; broadband recommended; fees may apply. Some applications, features, and services are not available in all areas. Visit Cell Phones and cell phone plans - | Wireless from AT&T, formerly Cingular to check AT&T network coverage in your area. iPhone is configured to work only with wireless service provided by AT&T. Warranty information available at Apple - Legal. When available, transferring your mobile number to a different service provider will terminate your service with your existing provider; termination fees and other charges may apply. Some features may require added fees. Contact your service provider for more details. Use constitutes acceptance of Apple’s software license agreement and third-party terms located in the iPhone box. Unauthorized modification of your iPhone software violates the software license agreement. Inability to use an iPhone due to unauthorized modifications is not covered under your warranty. (3) Compass reliability may be affected by usage conditions such as nearby magnetic fields. (4) MMS support from AT&T coming in late summer. (5) All battery claims depend on network configuration and many other factors; actual results will vary. Rechargeable batteries have a limited number of charge cycles and may eventually need to be replaced by an Apple service provider. See Apple - Batteries for more information. For more details of iPhone performance tests for talk time, standby time, Internet use over 3G, Internet use over Wi-Fi, video playback, and audio playback, see Apple - iPhone - Battery Test Information. (6) Some features require the iPhone 3.0 Software Update, which will be available for free download on June 17.

If you want to look through there, I am quite sure the price out the door without a new contract is considerable higher than the $199. They don't just give the money away, they treat it as an instant rebate and viola` you have the reason you paid more tax than you believe you should have.

 

[Calibagonian]

I have seen this with their new 3GS phone. if you want the 3GS phone u can upgrade from your 3G.

I have the 3G and a 2 year contract from 2008. I didn't upgrade.

 

[davew128]

Should have bought a Blackberry Bold....

 

[Zigner]

I have seen this with their new 3GS phone. if you want the 3GS phone u can upgrade from your 3G.

I have the 3G and a 2 year contract from 2008. I didn't upgrade.

So, you got an iPhone and signed up for a 2-year contract...you paid less than full price for the phone. You are required (per California law) to pay tax on the FULL RETAIL PRICE of the phone...not the discounted amount of $199.

 

[justalayman]

I have seen this with their new 3GS phone. if you want the 3GS phone u can upgrade from your 3G.

I have the 3G and a 2 year contract from 2008. I didn't upgrade.

right but you got a new contract when you purchased this phone, right? If you had not signed a contract, you would have been charged several hundred dollars more for this phone. You were taxed on the actual retail price. The difference between what you paid and the retail price is apparently treated as an instant rebate so you would not even realize the "deal" you got.