Consumers Digest

Purchase a phone from Best Buy w/ deposit, How does it work?

I am planning on purchasing a phone from Best buy through Verizon Wireless. Will I have to pay tax on the phone only which is $99.00 or will I have to pay it on the grand total ($299.00 this is including the deposit)? Thank You all I am currently residing in MA

Public Comments

1. i think you have to pay the whole sales tax on the $299, i assume you're getting a rebate. not sure about MA, i'm in AZ.
2. Sales tax rules really vary from one state to another. But usually a deposit would not be taxable. It isn't merchandise or service. A deposit is security or collateral. You get a refund eventually.