Anyone know MA state sales tax laws?

This link gives and overview of Massachussettes sales tax:

Wouldn't it also matter whether it was an intant rebate or a discounted sales price? My understanding is that if the end price is due to the rebates, the full tax on the retail price must be paid.

Thanks for those links. However, I think I'm interpreting differently than you are.

An excerpt from the definition of "sales price" is as follows:

(b) there shall be included (i) any amount paid for any services that are a part of the sale; and (ii) any amount for which credit is given to the purchaser by the vendor

That says to me that they can actually charge me even though the vendor has discounted? Wish it was written clearer...

I had to post the paragraph into Word and put it in outline form to make it clearer.

If I remember correctly, what you interpret this as was specifically excluded; however, I reserve the right to be wrong. :)

From what I can tell regarding the above is that (i) services would have caused the sales price to be higher, not lower and (ii) credit would normally be a RESULT of the sale, not a precursor to it. Did you purchase the service first and then use a credit toward purchasing a phone or was it a simultaneous transaction? The telling factor to this would be if you would have been able to save the credit for use later... highly unlikely in this scenario. If your purchase of services entitled you to a credit, then you should have been able to use it at your discretion, not theirs. If this was not disclosed, is it really a credit?

Another thing to remember is that retail, or suggested retail, does not necessarily equal price. You were given a price that was reserved for a special group... new customers. $70 IS retail for your group. $320 is retail for non-customers. Chances are, existing customers have a retail price somewhere in between.

I believe there can be a succinct argument that the additional amount used for calculation of sales taxes does not fall under the paragraph quoted. I would be interested in knowing which figure is used when they report sales for tax purposes and that is why I would involve the Department of Revenue. Something seems awry. Beverly

I had the service already and was taking advantage of their offer to allow a cheap upgrade to a newer phone as long as I agree to at least 2 more years of service.

Overall, I can see it both ways as written which makes it somewhat confusing. I think I'm going to make a call on Tuesday to the DOR and see if I can get someone who can give me a solid yes or no. My gut tells me that I'll be getting a refund. It just can't be right to charge sales tax on an amount not paid by the customer. Just doesn't make sense.

Thanks for your input on this. I'll post back with my findings for the record.