If I purchase the Verizon iPhone 4 with an upgrade for $199, will I have to pay tax for the full retail $650?

astronaut

New member
I have an upgrade for my Verizon plan, and I'm considering the iPhone 4. I know that with the upgrade, it costs $200. The full retail price without an ugrade/new contract is $650. I heard that I will have to pay sales tax for the entire $650, which would be pretty steep. Is this true? If it matters, I live in California.
 
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