how can massachusetts keep the sales tax charged on a cell phone I returned for a full refund?

I returned a cell phone and was told that Massachusetts does not refund the sales tax on a returned phone. How can they keep the sales tax when the sale was voided? Isn't it like all other merchandise that is returned for a refund? The tax paid is based on the retail value of the phone so I would guess it should be refunded upon return.

Reply to
Mennis
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sales tax on a returned phone. How can they keep the sales tax when the sale was voided? Isn't it like all other merchandise that is returned for a refund? The tax paid is based on the retail value of the phone so I would guess it should be refunded upon return.

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Reply to
Bill Brown

sales tax on a returned phone. How can they keep the sales tax when the sale was voided? Isn't it like all other merchandise that is returned for a refund? The tax paid is based on the retail value of the phone so I would guess it should be refunded upon return.

Here is what I found.

***** II. Issue You ask if a customer returns merchandise pursuant to the New Policy and receives less than theoriginal purchase price, whether the customer, and thus, Retailer, is entitled to:

  1. A full refund of all sales tax paid, based upon the original purchase price;

  1. A partial refund of sales tax based upon the percentage of the original purchase price actually refunded to the customer; or
  2. No refund of sales tax?

As discussed below, the answer is (1): a full refund of sales tax based upon the original purchase price, provided that the return is made within 90 days from the date of sale. Note that no sales tax is to be refunded if the return is made more than 90 days from the date of sale.

***** [Source:
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There are other documents on the ma.us web site that also apply but it appears, in general, if you made the return within 90 days of purchase, you should have received a full refund if sales taxes you paid, otherwise nothing.

Note that computing the actual amount of Massachusetts sales tax on a cell phone is a convoluted process particularly if it was part of a bundled purchase. So, in this specific case, the retailer may have been correct. (The other documents I mentioned above mostly deal with computing the sales tax on a cell phone.)

Reply to
Bill Brown

They're the state. They can do whatever they want. If MA law says that for cell phones the state doesn't have to refund the sales tax to the retailer and says the retailer doesn't have to refund the sales tax to the customer, then that's the way it is, like it or not.

-- Rich Carreiro snipped-for-privacy@rlcarr.com

Reply to
Rich Carreiro

Do not necessarily believe everything the vendor says. When did you return the phone compared to when the original transfer of money took place? Usually, a vendor can hold on to the sales tax for a while before turning it over to a state on a monthly or quarterly basis.

For my first computer printer, I got a substantial discount but the vendor charged me sales tax for the undiscounted amount. I think they really did not know that sales tax (California) required sales tax on the actual transaction. But you never know.

Reply to
Salmon Egg

In general that's the rule in California. But the law says that for some items (including cell phones, which is the topic of this thread) sales tax must be collected/paid on the undiscounted price.

___ Stu

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Reply to
Stuart A. Bronstein

Could it be that thePublic Utilities Commission (California) rather than the Board of Equalization collects sales and other taxes on communication equipment?

My experiences with the PUC (California) have always been good. It appears that the regulated companies do pay attention. My last encounter a few years ago was when my cell phone contract ran out. The company wanted me to bring my paid-for phone into one of their store before they would stop billing me. The PUC oyt a stop to that nonsense.

If there is a fault with the PUC, it is that they close their case when the specific problem is rectified. As far as I know, nothing was done to prevent the underlying practice from continuing.

Reply to
Salmon Egg

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