More “good” news for working families and business owners in Massachusetts. As of July 1, when you buy/replace your cell phone in Massachusetts, you have to pay sales taxes on the “real” price of the phone, not what you pay for it.
So when you get your phone for $199 in a two-year plan, you actually have to pay taxes on a higher, government-determined price. In practice, people dumb enough to buy/upgrade their phones in Massachusetts end up paying sales taxes on the MSRP.
But—this is NOT a tax increase. Just ask Gov. Patrick’s Department of Revenue chief, Navjeet Bal. She says it’s not a tax increase because the retailer COULD choose to pay the additional taxes. Yes there are additional taxes, and additional payments to the state, but—in her universe—there isn’t a tax hike.
She also says this higher tax “may or may not be good” for Massachusetts cell phone shoppers—though she can’t explain how even in theory it could be “good.”
Maybe we should just take her word for it.
So let’s see…Higher tolls, higher sales taxes, higher cell phone taxes and a proposal for higher gas taxes? Yep—we elected a Democrat governor all right.