Comments on: Coupons Are Taxable – Why Do We Have To Pay Sales Tax on Them? http://www.savingadvice.com/articles/2008/04/20/102106_2106.html Bridging the gap between saving money and investing Sat, 11 Feb 2012 18:46:33 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ncooty http://www.savingadvice.com/articles/2008/04/20/102106_2106.html/comment-page-1/#comment-969344 ncooty Tue, 01 Nov 2011 21:17:53 +0000 http://www.savingadvice.com/blog/2008/04/20/102106_2106.html#comment-969344 This extra charge is a small portion of the price we pay (sometimes literally) for poorly educated fellow citizens. One other point that's not mentioned here: the superfluous "tax" charge we pay on those seller-issued coupons is likely never paid to the state as tax. It's usually kept by the seller as revenue, because the accountants are smarter (or more conniving) than most customers are. Taxes are calculated and paid in aggregate, and because the accountants don't count the full product cost as sales revenue, they don't pay taxes on it. As with the article's author, I just try just to consider the value I'll actually get from the coupon, not what I SHOULD get. I'm long past the point of trying to argue with imbeciles who don't understand math, taxes, logic, etc. and don't have the authority to override the cash register anyway. This extra charge is a small portion of the price we pay (sometimes literally) for poorly educated fellow citizens.

One other point that’s not mentioned here: the superfluous “tax” charge we pay on those seller-issued coupons is likely never paid to the state as tax. It’s usually kept by the seller as revenue, because the accountants are smarter (or more conniving) than most customers are. Taxes are calculated and paid in aggregate, and because the accountants don’t count the full product cost as sales revenue, they don’t pay taxes on it.

As with the article’s author, I just try just to consider the value I’ll actually get from the coupon, not what I SHOULD get. I’m long past the point of trying to argue with imbeciles who don’t understand math, taxes, logic, etc. and don’t have the authority to override the cash register anyway.

]]> By: cptacek http://www.savingadvice.com/articles/2008/04/20/102106_2106.html/comment-page-1/#comment-966494 cptacek Sat, 22 Oct 2011 22:28:23 +0000 http://www.savingadvice.com/blog/2008/04/20/102106_2106.html#comment-966494 Totally depends on the state. If you have a problem with it in your state, hit up your state representatives. They might be more receptive to changing the sales tax laws than you think! In fact, they might not even know what they are at the moment... Totally depends on the state. If you have a problem with it in your state, hit up your state representatives. They might be more receptive to changing the sales tax laws than you think! In fact, they might not even know what they are at the moment…

]]> By: Anne Marie http://www.savingadvice.com/articles/2008/04/20/102106_2106.html/comment-page-1/#comment-812556 Anne Marie Wed, 20 Oct 2010 15:14:16 +0000 http://www.savingadvice.com/blog/2008/04/20/102106_2106.html#comment-812556 I would have to say that my biggest problem with having to pay tax is that the store gets the value of the coupon plus a handling fee (on my 50 cent coupon it was 8 cents plus the value of the coupon) so why doesn't the tax come out of that??? I would have to say that my biggest problem with having to pay tax is that the store gets the value of the coupon plus a handling fee (on my 50 cent coupon it was 8 cents plus the value of the coupon) so why doesn’t the tax come out of that???

]]> By: steve http://www.savingadvice.com/articles/2008/04/20/102106_2106.html/comment-page-1/#comment-572329 steve Thu, 09 Apr 2009 19:43:22 +0000 http://www.savingadvice.com/blog/2008/04/20/102106_2106.html#comment-572329 Your wrong in saying a that 6% your paying 94% of the value. $100 is not $94. To be exact your only pay just under. DOIN THE MATH Your wrong in saying a that 6% your paying 94% of the value. $100 is not $94. To be exact your only pay just under. DOIN THE MATH

]]> By: Tim http://www.savingadvice.com/articles/2008/04/20/102106_2106.html/comment-page-1/#comment-500755 Tim Tue, 23 Dec 2008 18:18:16 +0000 http://www.savingadvice.com/blog/2008/04/20/102106_2106.html#comment-500755 Using that logic, it would seems that someone should be paying tax on the handling fee that retailers receive for each coupon they remit, which is in addition to the face value of the coupon. To me, it's all just another way to part citizens and their money (and a clever one as most people do not notice--unless the item would otherwise have been free). Using that logic, it would seems that someone should be paying tax on the handling fee that retailers receive for each coupon they remit, which is in addition to the face value of the coupon. To me, it’s all just another way to part citizens and their money (and a clever one as most people do not notice–unless the item would otherwise have been free).

]]> By: Tax Man http://www.savingadvice.com/articles/2008/04/20/102106_2106.html/comment-page-1/#comment-289234 Tax Man Mon, 21 Apr 2008 14:40:30 +0000 http://www.savingadvice.com/blog/2008/04/20/102106_2106.html#comment-289234 In general, you pay sales tax on what the retailer charges for the item (e.g. $10 sale x 10% tax = $1 sales tax). If the retailer, reduces the price, the tax is also reduced (e.g. $2 discount so now we have an $8 sale x 10% tax = $0.80 sales tax). However, with coupons from outside parties (not coupons the retailer creates) the retailer still receives full price after reimbursement by the vendor for the coupon (e.g. $10 sale x 10% tax = $1 sales tax; $9 paid by customer, $2 paid by mfg.). That is why the customer pays sales tax, even if the item is free. The retailer is still receiving full value for the item and that is what the tax is based on. In an ideal world, the mfg. would pay the sales tax on the coupon, but when a retailer submits coupons to the mfg., they could be for sales that occurred in all 50 states and neither the retailer nor the mfg. would know all the correct tax rates or be able to report the correct tax back to the correct taxing authority. So taxis collected from the customer at the time of sale. With counties, cities, and special districts, there are over 7,000 different authorities who collect sales tax. In general, you pay sales tax on what the retailer charges for the item (e.g. $10 sale x 10% tax = $1 sales tax). If the retailer, reduces the price, the tax is also reduced (e.g. $2 discount so now we have an $8 sale x 10% tax = $0.80 sales tax). However, with coupons from outside parties (not coupons the retailer creates) the retailer still receives full price after reimbursement by the vendor for the coupon (e.g. $10 sale x 10% tax = $1 sales tax; $9 paid by customer, $2 paid by mfg.). That is why the customer pays sales tax, even if the item is free. The retailer is still receiving full value for the item and that is what the tax is based on. In an ideal world, the mfg. would pay the sales tax on the coupon, but when a retailer submits coupons to the mfg., they could be for sales that occurred in all 50 states and neither the retailer nor the mfg. would know all the correct tax rates or be able to report the correct tax back to the correct taxing authority. So taxis collected from the customer at the time of sale. With counties, cities, and special districts, there are over 7,000 different authorities who collect sales tax.

]]> By: Hilary http://www.savingadvice.com/articles/2008/04/20/102106_2106.html/comment-page-1/#comment-289028 Hilary Mon, 21 Apr 2008 06:20:33 +0000 http://www.savingadvice.com/blog/2008/04/20/102106_2106.html#comment-289028 Ugh, I just paid sales tax on a cell phone that was literally free with my contract renewal. The tax ended up being $11, which isn't a big deal for a new phone, but since it was an in-store discount, it sounds like it was bogus. Bummer. Ugh, I just paid sales tax on a cell phone that was literally free with my contract renewal. The tax ended up being $11, which isn’t a big deal for a new phone, but since it was an in-store discount, it sounds like it was bogus. Bummer.

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