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Sales Tax -- Will this work?

AnnV

Best Buy has the phone I want -- free with 2 year renewal. I'm past my renewal date, so good to go there. I understand there will be the ridiculous $30 "upgrade" fee imposed by Verizon, but my question has to do with sales tax. I live in California, in an area where sales tax is almost $10. I'd like to save myself that $50 sales tax, by getting this phone at a Best Buy store outside California since I'm traveling there before sale ends anyway.

Question --- Will I be able to wiggle out of paying California sales tax to upgrade my phone?

Comments

AnnV

I meant 10%, not $10 !!! (If only $10 I wouldn't complain! :smileyhappy:)

rcschnoor

I don't see why not.

Carrucan

That would be a neat trick. No, if you are standing in a Best Buy in Oregon and you purchase a new phone, you won't pay the California sales tax on the purchase price of the new device. You will pay the local sales tax (state and/or local).

silver6055

All depends on just how law abiding you wish to be:

California law requires tax on in-state purchases, and also requires tax on items purchased out-of-state for use in California.

http://www.boe.ca.gov/ads/news06.htm

So, you are meant to pay "use tax" on your out-of-state purchase. I would guess the percentage that do might be less than 100%

AnnV

that's kind of what I thought ... the difference is, California and two other states require sales tax on the retail cost of the phone, most other states on the actual sales price of the phone ... hence 0% on $0.

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