What Price is Tax Charged On? Does Best Buy charge tax on the retail phone price or the discounted plan price?

Question

Accepted Answer

Why am I paying tax on my yearly geek squad membership

Collin · Answer

Illegal taxation beyond the already routine nonpayment of the legal tax amount paid by customers is what Americans have come to expect from big business like Best Buy. If you know then you know.

JoshuaRL · Answer

It's off of the price you pay in the register. So if you're buying the phone outright it's the higher price. But if you're getting a contract that drops the price of the phone down and you pay tax on that lower price.

It works this way for other things too. Let's say there's a bundle on buying a case and a screen shield with a phone. Well, you pay tax on the lower bundled price. That's also why they charge you $1 for a phone. You have to pay some tax, but that's how you can pay the least.

Jackied03 · Answer

Discounted price

zippinpc · Answer

Taxes for merchandise are determined by local and state laws. Retailers charge according to those laws. If they did not, they would be subject to steep fines. Most states only charge by the amount you pay for it not value of the item you purchase. Laws really vary such as buying a car, most states will charge taxes based on value typically because when you pay the tax a form is completed with a declared amount such as 1 dollar. Huge amounts of potential income for the state or city are at stake. I have never heard of a state that will charge you based on the value of a phone or any other retail merchandise because they have much lower values that are easily tracked. Hope this helps.

Answered by zippinpc 11 years ago

Vegeta · Answer

You pay taxes on both depending on where you live on how much, it is just normal sales tax.

Fawk · Answer

Every city is taxed differently. Try going tot he store itself and asked, or buy and return, if you're not happy with the cost of the tax that is added on.

“What Price is Tax Charged On? Does Best Buy charge tax on the retail phone price or the discounted plan price?”

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