I didn't know it at the time but ATT charges sales tax based on the full price of $699 even though you are only paying $299 for the phone. Just thought I'd throw that out there in case there are people who are unaware of this.
I just upgraded from my 3G to the 3GS after only owning it for 4 months. It cost me $499 (32g) plus $38.55 in Nevada sales tax.
That is not right my friend. The guy who's paying $499 is paying lesser tax than you are. But of course we all do know that California tax is ripped off!