Charging taxes on amount I didn't actually pay

[Sboard]

I recently traded my phone in and was given a 330 dollar credit for it. I then put a 360 dollar down-payment on my new phone so I only had to pay the 30 dollar difference. Thr bill came to 76 dollars showing that my tax was 46.80. When I called the store they told me it's cause my total was 360, but according to the receipt subtotal and what I was told prior I would only be paying 30 dollars and wasn't told anything about tax on 360. Is this normal? 

[Cawtau · Accepted solution]

Hello Sboard,

  Welcome to the community!

  Yes, it is normal. When financing devices, the taxes are charged on the full cost of the device. The downpayment you made is towards the cost of a device:

~taken from here.

  I understand your bill only ended up being $76 dollars. However, the taxes on the device would have been on the total downpayment before the credit for your trade-in was applied.

Hope this helps 😀

Cheers

[Sboard]

Sweet thank you very much! Totally accepted if that's their policy, the store I was dealing with just refused to even show me a bill at first and wouldn't tell me the full total, so I was just making sure everything was in order. Thank you!!