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Sales tax on a free item?

Sales tax on a free item?

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by: QueenB Active Indicator LED Icon 16 OP 
~ 9 years ago   Apr 8, '14 2:19pm  
Got a new phone, which was valued at $510.00. I paid $0 for it. But I still paid $42.07 in sales tax. I always thought that sales tax was not collected when no money changed hands? 4951
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Katiemcg Active Indicator LED Icon 4
~ 9 years ago   Apr 8, '14 2:53pm  
That's odd. The value should be zero and there should be no tax. 4951
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Jake_Bob Active Indicator LED Icon 1
~ 9 years ago   Apr 8, '14 4:35pm  
The state has argued that since you are paying for the phone over the length of the contract that sales tax is due.  I didn't know that this was put in place nor do I agree with it.   But no one ask me. 4951
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Sniper12 Active Indicator LED Icon 12
~ 9 years ago   Apr 8, '14 5:18pm  
I have also notice that I paid taxes on a new phone thru my carrier and use a monthly payment plan to pay the phone off, I still get charged taxes on my bill on the monthly payment for the phone. 4951
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hardzep Active Indicator LED Icon 10
~ 9 years ago   Apr 8, '14 5:28pm  
As a nation we are overtaxed. Taxed when we make money, when we buy something with money, when we sell something for money, when we save money (taxed on interest). When we move money around (think retirement saving fees and bank charges). We can not do anything with our earned income without handing over a portion.
4951
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QueenB Active Indicator LED Icon 16 OP 
~ 9 years ago   Apr 8, '14 8:28pm  
Well, I can MAYBE see how they could tax if you're paying the phone in installments, although they should tax it as you pay the installment, not up front. But I also got a phone case at the ATT store, for free because I signed up for the ISSIS (a wave your card payment system) and I was charged sales tax on the $0 for the phone case too.  I've emailed ATT for an explanation since no one EVER answers the phone at the store back by Randalls.  4951
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fcabanski Active Indicator LED Icon 16
~ 9 years ago   Apr 9, '14 1:24pm  
You don't know the government very well, do you?

4951
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