I know, I know, another Couponing FAQ post in the same week. But Cathy emailed with a great question and I wanted to get your feedback!
I had a question about sales tax. I took advantage of the Earth’s Best Diapers deal at Babys R Us today. I had some manufacturers coupons for $2 off as well making each pack $3 or a total of $15 for the five I bought.
I was charged $4 in sales tax, which, when I figured it out was on the original $10.99 price for the diapers not the sales price. Is that common practice for sales tax on items purchased with coupons?
Most coupons state something to the effect of “consumer is responsible for sales tax”. I looked at the coupon from Babies R Us, and it did not state that, though it may be something that’s applicable whether they state it or not.
One more reason Colorado is an awesome place to live: no sales tax on un-prepared food items, minus soft drinks and candy!
As I understand it, the consumer will pay sales tax on the sale price of the item before a coupon – so, since the diapers weren’t on sale, and the discount was a coupon-only discount, I think that’s why Cathy was charged sales tax on the pre-coupon price.
I have always wondered how this works out, as I know sometimes it seems as if sales tax is charged on the pre-coupon price and sometimes it’s after coupon (seems like maybe this happens at Walgreens?). I’ve never sat down to study enough receipts to say for sure, though – just seems like it does seem to vary based on how a register is programmed.
Anyone else have an insights on sales tax and coupons?
Don’t miss out! Get deals like this via email:
Welcome to Springs Bargains, a service of our real estate business, Circa Real Estate Group! I’m Carrie, and since 2008 I’ve been sharing free and discounted ways to eat, play, and enjoy life in Colorado Springs.