I have a questions regarding sales tax in California. On Friday I bought 2 iphones and a case from AT&T wireless. My balance due was close to $450.00. After going home I noticed on my receipt that I was taxed at 8.38% but I paid $104.00 on tax. If you do the math that is not right. Without a new 2-yr contract the iphones would have been $599.99 so we had a savings of $800.00. The way I caculated it was that I was charged sales tax on the amount I saved by getting a 2-yr contract ($800) plus what I actually paid/owed ($450). That is how the tax of $104 was calculated. Now can they do that? and if they can’t where can I find info on this to support it cause I think that is wrong to charge me tax on the full price when I did not even pay/owe full price.