My most recent purchase

Yesterday my son purchased a new smart phone.. I understand the sales tax application in the state of Massachusetts. However the paper receipt we were given listed the price of the phone as 99.99 : upgrade fee 30.00: sales tax 6.25.  total due 166.18. It had a disclaimer line that stated that in Massachusetts and Nevada the sales tax is basses on the cost to VZW and that cost is 99.99. So what about that other $30.00 I was charged. Did it buy my salesperson's lunch?

You were charged correctly.  The cost of the phone to VZW is actually $580-$600 (est.) depending on the phone your son purchased and that is the value (also known as Full Retail Price) the sales tax is based on.
The $99.99 listed your bill is what VZW is charging you (or your son) for the phone after they subsidized the remaining $480-$500 (est.) for your agreement to enter into the 2 year contract.

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