Why Am I Paying Sales Tax On Price Before Discount?

 
 
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Old 05-10-2011, 03:14 PM
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read Why am I paying Sales Tax on price before discount?

All,
Very odd thing happened to me today. I went to Target to stock up on Nivea and had my $3/1 Qs in hand. I decided to get the Cashmere one and it was on sale for $3.19. So I was essentially paying 19 cents per body wash.

On my receipt my total was $1.14 with a Sales tax on $19.14 at 7% which was $1.34! Of course, I caught this as I was walking out and couldn't understand why the heck I was paying sales tax on this and not on $1.14.

Went to customer service and the woman there had no clue why. She called a Manager and I got sick of waiting so I left.

Has this happened to anyone else and could they give me a valid reason why? I have a feeling that something is wrong. I do plan on visiting the store again this week and bringing my receipts to discuss it.

Appreciate your feedback!
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Old 05-10-2011, 03:17 PM

RE: Why am I paying Sales Tax on price before discount?

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Im pretty sure it has something to do with state laws, some states you pay tax on the total before coupons, some states you pay tax on the total after coupons.

Cant promise you this is the reason why, but its a possibility
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Old 05-10-2011, 03:20 PM

RE: Why am I paying Sales Tax on price before discount?

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Most states you pay tax pre coupon price.Tax kills alot of the deals for me
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Old 05-10-2011, 03:20 PM

RE: Why am I paying Sales Tax on price before discount?

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I live in Illinois and we are taxed based on the total amounts before coupons, discounts, etc. Even if the total is free, we still end up paying 8.5% on the total.
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Old 05-10-2011, 03:22 PM

RE: Why am I paying Sales Tax on price before discount?

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same here in TN but tax is 9.25% so count your blessings
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Old 05-10-2011, 03:23 PM

RE: Why am I paying Sales Tax on price before discount?

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Here in NM I pay the tax on pre coupon total at 8.18%
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Old 05-10-2011, 03:26 PM

RE: Why am I paying Sales Tax on price before discount?

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Same here, but tax is 10%

There are some states that only charge tax on the after-coupon price, and others that only charge tax on certain items (like food isn't taxed, or is taxed after coupons). It varies WIDELY from state to state.
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Old 05-10-2011, 03:26 PM

RE: Why am I paying Sales Tax on price before discount?

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Us too in NJ it is 7%
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Old 05-10-2011, 03:38 PM

RE: Why am I paying Sales Tax on price before discount?

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Quote:
Originally Posted by FlaBarb64 View Post
All,
Very odd thing happened to me today. I went to Target to stock up on Nivea and had my $3/1 Qs in hand. I decided to get the Cashmere one and it was on sale for $3.19. So I was essentially paying 19 cents per body wash.
Coupons are a form of payment so you are (in most states) taxed on the pre-coupon/payment price not on the post-coupon/payment price.
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Old 05-10-2011, 05:30 PM

RE: Why am I paying Sales Tax on price before discount?

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Thanks for the over-whelming responses!!!

But get this, I was in the same Target and bought one item which had a $1 Q, and it was a Health & Beauty item, and the sales tax was on the discounted amount, not the full price. Is it a quantity thing? Just odd to me.

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Old 05-10-2011, 06:02 PM

RE: Why am I paying Sales Tax on price before discount?

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Quote:
Originally Posted by FlaBarb64 View Post
Thanks for the over-whelming responses!!!

But get this, I was in the same Target and bought one item which had a $1 Q, and it was a Health & Beauty item, and the sales tax was on the discounted amount, not the full price. Is it a quantity thing? Just odd to me.

Was it a Target coupon? Sometimes store coupons ring up differently and apply as a discount or other reduction in the item's price (rather than a MFR coupon that effectively reduces your order total) therefore reducing the taxable amount.

Confusing?
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Old 05-10-2011, 06:35 PM

RE: Why am I paying Sales Tax on price before discount?

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Quote:
Originally Posted by FlaBarb64 View Post
Thanks for the over-whelming responses!!!

But get this, I was in the same Target and bought one item which had a $1 Q, and it was a Health & Beauty item, and the sales tax was on the discounted amount, not the full price. Is it a quantity thing? Just odd to me.

Store coupons lower the price of the item, therefore lowering the taxable amount.
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Old 05-11-2011, 05:32 PM

RE: Why am I paying Sales Tax on price before discount?

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Ah, yes it was a Target Coupon. Well, thanks for all the feedback. I learn something new everyday!
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Old 05-11-2011, 05:35 PM

RE: Why am I paying Sales Tax on price before discount?

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We pay tax after Q's here in Texas. If the state were to change this and tax us before Q's I would have to seriously consider ordering a lot of my stuff off Amazon instead of buying local. I would rather pay more for the product and pay no sales tax than give a penny to the state.
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Old 05-11-2011, 06:06 PM

RE: Why am I paying Sales Tax on price before discount?

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Yes I live in Indiana, and while we are NOT taxed on food at all (you could theoretically even get Pop Tarts for free if the correct coupons + sales are out there!) but everything else is taxed at 7%, and the before-coupon price is what is used to calculate tax. Yeah, kinda sucks, but whatever. You're still spending way less than the population at large, yanno?
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Old 05-12-2011, 05:17 PM

RE: Why am I paying Sales Tax on price before discount?

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Wow Florida tax is only 6% in Broward county... And food is tax free.. We do pay tax before coupons as well.
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Old 05-12-2011, 05:40 PM

RE: Why am I paying Sales Tax on price before discount?

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Quote:
Originally Posted by texasdee
We pay tax after Q's here in Texas. If the state were to change this and tax us before Q's I would have to seriously consider ordering a lot of my stuff off Amazon instead of buying local. I would rather pay more for the product and pay no sales tax than give a penny to the state.
That's the great thing about Texas! I read an article recently, if a politician utters the word "tax" it's considered a political suicide. You noticed I'm sure with the recent budget deficit no one (not Perry, not any other state reps) tried to propose a new or increased tax. That's just Texas.

Also I have been reading about some states trying to start taxing Amazon and other online purchases in light of the deficits, good to know we are in Texas, .

OT: Texasdee, where in Texas are you?
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Old 05-13-2011, 12:51 PM

RE: Why am I paying Sales Tax on price before discount?

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I was reading the "fine print" on a coupon today and I think we're charged the pre-coupon tax because it says on the retailers instructions "You pay the tax." Therefore I think when the company has to submit their tax money they would have to pay the total amount of the items tax because they were refunded he coupon amount from the manufacturer. Just my opinion
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Old 05-14-2011, 07:10 PM

RE: Why am I paying Sales Tax on price before discount?

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9.25 here in TN...tax stinks!!
 


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