BUYER BEWARE!!! iPhone 4s

[dannyaraujocons…]

So I was recently contacted by an AT&T representative who offered an upgrade to the new iphone 4s for $199 and then offered a $50 credit (to be credited within two billing periods) with a contract extension.  I went ahead and agreed, I had the 3g and I was overdue for an upgrade to my phone.  I went ahead and purchase two of them for our business account and got the same deal for both lines.

Total to be charged (as quoted by AT&T rep.) $399.98

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Nothing was ever mentioned about tax but I assume the typical +/- 8% would be added to my purchase price of $399.98 and then I'd see a $100 credit within a couple of months, no big deal. 

Boy was I surprised to see a total charge on my credit card for $494.22 today.  I then contact every representative under the sun and was told that the two iphone 4s phones were taxed on their "full price" of $649...  Who has ever paid $649 for a phone, first of all and who knew that CA State law requires AT&T to tax their users on the entire "full price" and not the final price paid?  I don't know who makes me more angry- AT&T for not disclosing this prior to purchase OR the State of CA for requiring AT&T to obey this ridiculous statute!  It isn't the matter of the $60 or so that I lost in this deceiving business practice but the principle of AT&T not disclosing this info and the State of CA allowing this to take place. 

If I go into a retail location and something is on sale I do not then pay taxes on the "perceived or non-discounted" price that the store comes up with rather the price that is negotiated and finalized at check out.  THIS IS RIDICULOUS! 

[archermoo]

It isn't a matter of California allowing it to happen.  It is a matter that they require it to happen.  AT&T didn't tell you about it because it isn't their job to explain the laws of the state in which you live.  They sell their products and services, and collect whatever taxes they are required to by the state.  If you have a problem with the law, you should contact your state representatives and/or the Governor's office about it.

[SLIKRICK]

Yeah, kinda sucks, but it is a California law I believe a couple of other states have that requirement also). The full price of the phone is actually paid. Just not entirely by you. You're just responsible for the tax from that entire sale.

[HelloKitty007]

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dannyaraujocons wrote:

Who has ever paid $649 for a phone...

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Guilty... (pleasure)... I am one of many who bought the Original iPhone 8g at the price of $599 when it first came out. Add taxes and it is equal or less to $649. Expensive yes, but I thought I deserved it for my birthday  

If you think $649 is expensive, then check out this $8 million dollar plus  iPhone 4 and even more for the iPhone 4S 

[21stNow]

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dannyaraujoconstruction wrote:

Who has ever paid $649 for a phone, first of all and who knew that CA State law requires AT&T to tax their users on the entire "full price" and not the final price paid? 

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I live in MD and knew that CA charges sales tax on the non-discounted amount of cell phones.  You all also get the benefit of a 30-day return policy, regardless of what some of the other carriers have as their return policy. Oh, and plenty of people pay $649 and more for an iPhone.

[dsconst321]

unfortunately, you live in a state that is broke.  a redue at election time in cal is what is needed (both on the state and federal government)

[smalcom]

Why does everyone today look to blame somebody else for their own failings. If you were in a court of law, a judge would tell you that ignorance of the law is not a valid defense. It's time people took responsibility (again) for their own actions or inactions.

[johninsj ACE - Wizard]

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dannyaraujoconstruction wrote:

Total to be charged (as quoted by AT&T rep.) $399.98

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Nothing was ever mentioned about tax

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Hm... last time I did this I was quoted the price, and was told (but already knew, having purchased phones in CA for 11 years) that the tax, due to CA law, was on the full price.

Guess you found out the hard way. It's like this for any phone from any carrier in CA though, just so you know.

You should change your tags, since they're not accurate. They should read "CA Tax Laws"