What is luxury tax for Verizon Wireless phones?

[iloveyoue1]

I'm eligible for an upgrade for Verizon Wireless. I upgraded to an iPhone 4 (Free with 2 year contract). Yet, they hammered me with a 30$ upgrading fee and another 50$ "luxury tax fee". Is this sales tax based off the full retail price of the iPhone 4? This is BS! Help!

 

[QuantumFluxx]

You live in California, right? Regulation 1585 of the California state code on sales and use taxes specifies that all cell phones will be taxed at the full retail amount, regardless of the price paid as part of a special offer. Sorry, but there is nothing that you can do about this. Good luck.