An attorney for Apple declined comment.
During the time period, Apple sold iPhones at a discount if the consumer signed a long-term contract with Verizon Wireless, AT&T Mobility and Sprint, and then taxed the consumer on the discounted price. For example, a $649 iPhone typically sold for $199 with a two-year contract with a wireless carrier, the court said.
The tax question has come up in various states. In Maine, the state contended the iPhones should have been taxed at the full cost since Apple had agreements to recoup the cost difference with the wireless carriers.
“The price reductions, the carriers’ payments, and the length of the wireless contracts were all directly related,” Justice Andrew Horton wrote.