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Old 10-05-09   #1 (permalink)
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Default I think AT&T has a screwy sales tax system here in CA at least.

So Saturday I went to buy a 32gb iphone 3gs at the AT&T store. I got it for $299 the new contract price. Now I got charged with $61 of sales tax, which he is CA is at 8.75%

For all you mathmatitians you may be quick to see I was overcharged and that it should be something like $21 or $26. Looking closley at my reciept I see the $400 saving I got from getting it with a 2 year contract, making as the receipt said my SUBTOTAL $299. Yet they charged the sales tax as though it was a $699 subtotal, which is what they run for with no contract. I called them and they said it was normal, and now im agrivated and unsure if this is even legal.


Check your guys receipts, if you have got iphones or any phone from AT&T, bought other phones from tmobile, verizon, or bought the iphone at the apple store. I want to see how wide spread this is. If these other places charge tax based upon the phones no contract price.
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Old 10-05-09   #2 (permalink)
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Might want to get a lawyer to look at that? Lol I'm pretty sure they cant just list that under sales tax since ya know, it dont match.

AT&T's always trying to rip extra money off people.
Oh and call them again and tell them to set the sales tax right. There's no way they can charge like that ridiculous amount of sales tax,

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Old 10-05-09   #3 (permalink)
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Everything with AT&T is screwy. When we first got our dsl here (wich I absolutely loath) They mysteriously overcharged us 60 dollars I can't recall what for but its a good thing she caught it my stepmother got on the phone with them and set that straight. Only good thing is they promptly refunded us.
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Old 10-05-09   #4 (permalink)
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Ditch AT&T, even if it costs you to do so.
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Old 10-05-09   #5 (permalink)
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Make some more calls saying you're gonna get that crap on TV if they don't set it straight.

If that doesn't work, do some more research online on the il/legality of it. Might as well try and get the money no matter whether it is or not though.
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Old 10-05-09   #6 (permalink)
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Apparently from looking around, it's standard for anyone. They charge tax on the unsubsidized price. Still seems immoral. Make an enormous markup, give you a "deal" by making you sign a contract, and the state gets a fat kickback.

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Old 10-05-09   #7 (permalink)
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Have had AT&T for like 6 yrs now, never had a problem with them. I have the samsung eternity tho, so all I got for it was unlimited texts, and we have family plan so we pay about 110-120$ for 4 phones, 2 with text message plans.
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Old 10-05-09   #8 (permalink)
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Take it up with your local government, it's not ATT's fault. They aren't keeping the money, it's going to the state.
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Old 10-05-09   #9 (permalink)
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Welcome to the 1/4 of our tax then.
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Old 10-05-09   #10 (permalink)
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It's borderline fraud but this is how it works. They sold it to you for $699, and that's what AT&T will report to CA Franchise Tax Board. You pay the tax on that amount, regardless of what your receipt says. AT&T keeps the difference and you continue to pay them for the next 2 years.
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