Sales tax

[Sentrand]

Jurisdiction

Ohio

Probably not in the correct area.
I switched phone carriers last week. I purchased a phone for $49 for switching. looking at the receipt I was charged sales tax on the original price of $399. Shouldn't I have been charged sales tax on the sale price?
also I saw charges for Ohio state sales tax and county sales tax. I've never seen that before! And I do have my receipt.

 

[zddoodah]

When you get a discounted phone in connection with a promo or carrier switch, you typically pay sales tax on the full retail price of the phone.

 

[adjusterjack]

It's that kind of thing that makes me happy to use a Tracfone.

 

[Zigner]

The OP's lucky s/he bought such an inexpensive phone.

 

[Tax Counsel]

Probably not in the correct area.
I switched phone carriers last week. I purchased a phone for $49 for switching. looking at the receipt I was charged sales tax on the original price of $399. Shouldn't I have been charged sales tax on the sale price?

Let me guess: you got the phone for $49 but signed on for a contract with the carrier that commits you to being with the carrier for some period of time, likely two years, right? If so then while you only paid $49 cash up front for the phone, the rest of the cost of that phone is in that contract you signed up for. The state charges the sales tax on the full cost of the phone in that circumstance.

also I saw charges for Ohio state sales tax and county sales tax. I've never seen that before! And I do have my receipt.

Cities and counties in Ohio may impose their own sales taxes on top of the state sales tax. It the local sales taxes might not always be separately stated on the receipt you get, but the sales tax you pay will be the combined state and local rates if the sales tax is not broken down for you.