California Sales Tax on Wireless Telephone Equipment
Is it legal for a wireless telephone company to charge sales tax on equipment purchased at a discounted rate but charging the customer tax on the full retail price? (example: customer paid $499.00 for equipment but was charged tax for $1199.00)
1 Answer from Attorneys
Re: California Sales Tax on Wireless Telephone Equipment
the general rule is that sales tax is not charged on discounts.
SEE R&TC 6011 & 6012 - http://www.leginfo.ca.gov/cgi-bin/displaycode?section=rtc&group=06001-07000&file=6001-6024
there are special rules relating to wireless telecommunication devices. the issue is whether or not the sale is a "bundled" or "unbundled" transaction.
SEE Regulation 1585 - http://www.boe.ca.gov/pdf/reg1585.pdf