I live in California and if one can be screwed then normally it will be here. Please don't "try" to answer this if you aren't 100% sure. I already went up the verizon I don't know chain of command. I would like someone to explain how it is legal to tax on the full price. I know with rebates you tax on even the rebate amount BUT when you are working with like the every 2 new promote that is 50.00 that's not a rebate. Trade in credits are not rebates. So I would like the legal explaination as if speaking to your local village idiot, because I've tried to find the answer and I just can't. Thanks!!
Are trade-ins taxable?
Yes. The value of a trade-in is considered taxable. For example, if you sold a car for $20,000 and accepted a trade-in valued at $4,000 as partial payment, tax would be based on the $20,000 selling price (that is, you would not deduct the value of the trade-in from the sales price of the car being sold when computing sales tax).
As far as trade ins go.
It is legal because you state REQUIRES it to do business in California. Verizon has no choice in the matter if they want to do business there.