Trade ins and sales tax.

I don't know of any place where a trade in results in a reduction of purchase price. It's a credit towards the purchase price. Apple will allow US trade ins where the device could have been purchased in any state, including those with different sales tax rates or even no sales tax.

That’s how sales tax works. In some states the value of tangible property traded in for a similar item is untaxed, but that’s not true everywhere. And, you’re purchasing a new item, you’ll pay tax.

lobsterghost1 wrote:

If you are uncomfortable with the tax, take your concerns to Apple. There's nothing anyone here can offer you. My guess is Apple is following the letter of the law, but I don't live in your state, nor know the tax laws there.

I had another look at the original post, and sounds something like the lifetime "trade-in policy with certain cellular service providers. But in that case the terms likely say that the customer is still responsible for all sales tax. I remember that as far back as getting my first subsidized cell phone where it was supposed $99, but I had to pay sales tax on the full $600 retail value.

lobsterghost1 wrote:

I just read the link and it makes it pretty clear that in MA., the seller has every right to collect the tax on the full retail price of the phone. Do you read it any differently?

It's pretty long, but yeah that seems to be the gist.

Go complain to your State representatives. Apple has no control over taxes.

Count yourself lucky, the sales tax in Cuyahoga County, Ohio is 8.5%, though it varies a little by county.

If you don't like it, go to a state with no sales tax. Alaska, Delaware, Montana, New Hampshire, and Oregon are the five states that have no sales tax. That doesn't mean that municipalities don't have a sales tax...

Ultimately, you’ll need to consult an expert if you have tax questions. You can pretty much guarantee that the retailer is following the law regarding taxation in your state. Other issues, contact the legislature

I just read the link and it makes it pretty clear that in MA., the seller has every right to collect the tax on the full retail price of the phone. Do you read it any differently?

Go complain to the government.

When you originally bought it, the tax went to the State, not Apple. You don't get a refund on the sales tax when you trade it in.

I'm not sure what you're looking for here? This is a user to user only forum. Apple isn't here, just other users.

If you are uncomfortable with the tax, take your concerns to Apple. There's nothing anyone here can offer you. My guess is Apple is following the letter of the law, but I don't live in your state, nor know the tax laws there.

I typically upgrade every year. And as far as I remember, I pay the sales tax on the full price of the new iPhone, and my trade is used towards the total I owe. I have every confidence, Apple is doing what is required in my State. I can't comment on other states as tax rates and policies vary by state. I have every confidence Apple does what is correct tax wise in every state they sell devices.

https://www.mass.gov/directive/directive-11-2-salesuse-taxation-of-cellular-telephones-in-bundled-transactions