online sales tax

Why do I have to pay the full retail price tax for iPhone 5 even if I'm getting it subsidized through the carrier?

Episode 919

Lauren from Los Angeles, CA

Leo says that's because states want the full tax since she's really buying the phone at full price, just amortized over time. Every state law is different, too. Leo says there used to be a way around this with Amazon, but they're collecting sales tax now.