Sales Tax on Mobile Phone and Service Bundle?

You expect to pay sales tax on the purchase of a mobile phone. But what if you’re offered a discount if you agree to cell phone service with the carrier for a certain period (e.g., 2 years)? California imposes the sales tax on the bundle, including the full value of the phone and not its discounted price. The highest court in the state denied an appeal from an appellate court upholding the state’s application of the tax. The next time you purchase your next mobile phone, read the fine print to see the extent of sales tax in your location. #IdeaoftheDay

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