I must have muted the ringer.
"Phone tax surprises many buyers" January 12, 2012|By Michael B. Farrell
When Shari Worthington upgraded to an iPhone 4S, she expected to pay more for the latest technology from Apple. But the hefty sales tax tacked on to her purchase came as a surprise.
“Why am I paying $40 tax on a $149 phone?’’ Worthington, a Worcester advertising executive, said she asked the Verizon Wireless sales clerk in Shrewsbury.
The answer: Because state tax regulations treat cellphones differently than other consumer products.
In Massachusetts, a phone that is deeply discounted when it’s tied to a cellular service contract is supposed to be taxed at the product’s actual value, which is typically a lot higher. And as the list price of some phones has soared to as high as $850, more people are noticing, and complaining about, the added cost.
State lawmakers have introduced bills to eliminate the policy, and the Retailers Association of Massachusetts is calling for cellphone buyers to be taxed on what they are charged at the register....
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