You learn something new everyday: Coupons & Sales Tax

[hall0731]

Here in Texas we pay tax on subtotal after coupons. I did the same dryer sheet deal for snuggle at Target.

I got 6 boxes @ 4.29 each=25.74

I used 6 manufactur coupons @ 3.00 each=18.00
I also used 3 Target coupons to stack@ 1.50 each=4.50

25.74
-18.00
- 4.50
--------
3.24 @ 8.25 %= 0.27 tax= 3.51

A great deal in my book.

 

[Cheshire Figment]

As a general rule the store is not giving you a discount. Technically, with a manufacturer coupon you are paying full price to the store and the manufacturer is giving you a rebate. For convenience the store is acting as the manufacturer's agent.

However, (and here is where the fun starts) if the store is offering "double" coupons, then you are getting a partial discount.

For example, let's say you have a $1.00 coupon for a taxable $3.00 item. Normally you would pay the tax on the $3.00 and would get the "rebate" of $1.00, so you would end up paying $2.00 plus the tax on $3.00.

But if the store was offering double coupons, the store would actually be giving you a discount on the selling price of $1.00, effectively reducing the selling price to $2.00. So then you would pay $1.00 plus the tax on $2.00.

 

[donnajean17]

This thread makes my head spin! I'm sure glad I live in sales tax free NH! I could never keep track of all that math! LOL!!!