iPhone 4S Sales tax on out of state purchase? Time for a road trip?

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Level 2

164 points

iPhone 4S Sales tax on out of state purchase? Time for a road trip?

In California (and I believe two other states, if not more) the sales tax on an iPhone is calculated on the "retail" price of the phone. This amounts to about $50-$60, much higher than the sales tax on the subsidized price of $199 for the 16gb model (about $20).

If I were to purchase the phone in another state from an AT&T/Verizon store, or one of their "authorized resellers" in person, would I pay the tax for the state I am purchasing the phone in, or would I have to pay California's higher tax on the unsubsidized "retail" price?

I realize that the online Apple Store charges tax based on the phone's shipping address.

Do the stores base the sales tax on where you are purchasing the phone (in person), or on the billing or service address (California, in my case)?

Anyone who has actually done this (an out of state purchase - in person, not on-line)? What was your sales tax amount?

Posted on Dec 12, 2011 12:28 PM

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Answer 1

modular747

Level 6

19,662 points

Dec 12, 2011 12:31 PM in response to T. Oliver

By law, the sales tax is determined by the state you purchased it in, or shipped to if from the online store.

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Answer 2

wjosten

Level 10

95,321 points

Dec 12, 2011 12:41 PM in response to T. Oliver

If they got a brick/mortar presence in California, you're gonna pay California sales tax, it's that simple.

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Answer 3

T. Oliver Author

Level 2

164 points

Dec 12, 2011 12:55 PM in response to wjosten

Yes, this is true in the case of an on-line purchase, but I plan on traveling soon, and will be purchasing the phone in another state at either an Apple Store, a Verizon store, or an AT&T store IN PERSON.

I have purchased many Apple products from Apple Stores in other states (Delaware=No Sales Tax WOOT!), and the tax is calculated for the state I purchased in.

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Answer 4

roaminggnome

Level 10

106,365 points

Dec 12, 2011 1:00 PM in response to T. Oliver

As Modular said, you pay sales tax based on the state in which you purchase.

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Answer 5

deggie

Level 10

167,183 points

Dec 12, 2011 1:15 PM in response to T. Oliver

It is a lot more than two, I would check the states you are going to be in first. I'm a little confused about your statement that you may purchase it at a Verizon store or an AT&T store. Does this mean this is a first time phone and you have not decided on which carrier you are going to use?

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Answer 6

T. Oliver Author

Level 2

164 points

Dec 12, 2011 1:33 PM in response to deggie

No, this is not a first time phone. Have been with Verizon since 2000, and am happy so far. Need to get two phones to replace some dinosaurs that we have now.

Haven't decided on Verizon or AT&T yet. Verizon=Better coverage. AT&T=Lower plan rate. Will not even consider Sprint.

It's not a carrier issue. I'm just trying to save maybe $60 on sales tax for the two phones. (Yep - I'm a cheap old geezer!)

I will check on the different states and their sales tax policies on unsubsidized/subsidized phones.

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Answer 7

modular747

Level 6

19,662 points

Dec 12, 2011 3:02 PM in response to T. Oliver

What you want to do makes sense only if traveling to and from another state to buy the phone costs <$60....

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Answer 8

fromsouth

Level 5

4,945 points

Dec 12, 2011 3:51 PM in response to T. Oliver

I actually think that your little plan is going to work and all the luck to you, my friend. Consider that though,

I ve spoken to a guy today, who was promised something, by one of the phone companies and promise was

not fullfiled. So he would like to return the phone, but state he got it from is several hundred miles away. Well,

you got the point, I guess. All the best.

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Answer 9

deggie

Level 10

167,183 points

Dec 12, 2011 4:00 PM in response to fromsouth

Doesn't matter what state he purchases it from as far as returning it.

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Answer 10

T. Oliver Author

Level 2

164 points

Dec 13, 2011 12:55 PM in response to deggie

I'm not too worried about having to return the phones...which brings me to the questions I would like responses for...

Anyone who has actually done this (an out of state purchase - in person, not on-line)?

If yes, what was your sales tax amount?

...and...

Did the store base the sales tax on the billing/service address of your carrier's contract, or were you charged the sales tax for the state where you purchased the phone(s)?

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Answer 11

KiltedTim

Level 10

195,933 points

Dec 13, 2011 1:10 PM in response to T. Oliver

I haven't gone out of state to purchase a phone, but the only thing I'm aware of you can buy where the sales tax is based on where you live as opposed to where the sale took place is an automobile. UNLESS you purchase a phone through your carrier and have it billed to you with your regular statement instead of paying for it up front as you will with an iPhone.

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