How Does KMART Calculate Taxes?

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Old 06-04-2012, 12:34 PM
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How does KMART calculate taxes?

Does anyone know how KMart calculates their taxes. I live in Texas and made a purchase today. My subtotal was 17.45 and my tax toal was $2.64= $20.64.

Current TX tax rate is 8.25%, so
17.45 x 8.25% =$18.89

A tax total of $2.64 would have required me to purhcase $32 worth (2.64/.0825). My total before all coupons was $52.01 so the amount can not be triggered from that either.

From what I gather at other stores such as CVS, Walgreens, they tax the total after coupons have been used. Is there any reason that you all know of that KMart is allowed to do it differently?
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  #2  
Old 06-04-2012, 01:45 PM

RE: How does KMART calculate taxes?

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From my observations from doubles and taxes here in Wisconsin, I've noticed that the amount that Kmart doubles only is not taxed as well as the amount of any Kmart coupons. So - if you do doubles and you used (5) $1.00 coupons the amount of the double only is not taxed (e.g. $5.00).

For instance, my purchases today:

Total of $65.05 in merchandise

Kmart coupons and deductions of $15.84
Doubled amount of coupons $5.00

Total to be taxed on $44.21 @ 5.5% tax = $2.43 (I was actually only taxed $2.00 on this transaction, so not sure where the other $.43 in savings came from - possibly the $3 & $5 cats I used as that would amount to $.44 if not taxed)
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Old 06-04-2012, 02:41 PM

RE: How does KMART calculate taxes?

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Quote:
Originally Posted by railroadmom View Post

Total to be taxed on $44.21 @ 5.5% tax = $2.43 (I was actually only taxed $2.00 on this transaction, so not sure where the other $.43 in savings came from - possibly the $3 & $5 cats I used as that would amount to $.44 if not taxed)
The $5 and $3 coupons shouldn't reduce the tax because those are manufactuers coupons not store coupons.
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Old 06-04-2012, 02:47 PM

RE: How does KMART calculate taxes?

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Quote:
Originally Posted by tracysbeans View Post
The $5 and $3 coupons shouldn't reduce the tax because those are manufactuers coupons not store coupons.
I think it depends on your state as well.... in Missouri taxes are based on the total you pay after all discounts.
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Old 06-04-2012, 02:49 PM

RE: How does KMART calculate taxes?

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Here in MI food is not taxed unless it prepared food. Such as hot food and already made sandwiches. So maybe there was something that wasn't taxed at all. PA has crazy taxes. Like dry pasta is taxed but chips are not. I never figured that out.
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Old 06-04-2012, 02:59 PM

RE: How does KMART calculate taxes?

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Quote:
Originally Posted by debbie29638 View Post
I think it depends on your state as well.... in Missouri taxes are based on the total you pay after all discounts.
Yes but this person stated she was from WI. And WI is taxed pre-coupons.
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Old 06-04-2012, 03:01 PM

RE: How does KMART calculate taxes?

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Quote:
Originally Posted by tracysbeans View Post
Yes but this person stated she was from WI. And WI is taxed pre-coupons.
I thought it said Texas?
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Old 06-04-2012, 03:01 PM

RE: How does KMART calculate taxes?

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Quote:
Originally Posted by bubbsguy View Post
So maybe there was something that wasn't taxed at all. .

I think maybe this could be it for the person in WI.
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Old 06-04-2012, 03:03 PM

RE: How does KMART calculate taxes?

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Quote:
Originally Posted by railroadmom View Post
From my observations from doubles and taxes here in Wisconsin, I've noticed that the amount that Kmart doubles only is not taxed as well as the amount of any Kmart coupons. So - if you do doubles and you used (5) $1.00 coupons the amount of the double only is not taxed (e.g. $5.00).

For instance, my purchases today:

Total of $65.05 in merchandise

Kmart coupons and deductions of $15.84
Doubled amount of coupons $5.00

Total to be taxed on $44.21 @ 5.5% tax = $2.43 (I was actually only taxed $2.00 on this transaction, so not sure where the other $.43 in savings came from - possibly the $3 & $5 cats I used as that would amount to $.44 if not taxed)
Quote:
Originally Posted by debbie29638 View Post
I thought it said Texas?
But this person that commented is from WI. That is the post I was replying to.
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Old 06-04-2012, 03:11 PM

RE: How does KMART calculate taxes?

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I too live in Texas and although I am not a Kmart shopper, I have always been taxed after all coupons and discounts. This is weird that your tax wouldn't be on the final price.
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Old 06-04-2012, 03:21 PM

RE: How does KMART calculate taxes?

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okay I think my point got missed. It may not be the way "Kmart" taxes but more of the rules for the state you live in.

Sorry if I caused confusion.
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Old 06-04-2012, 04:05 PM

RE: How does KMART calculate taxes?

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Quote:
Originally Posted by ctacktor View Post
I too live in Texas and although I am not a Kmart shopper, I have always been taxed after all coupons and discounts. This is weird that your tax wouldn't be on the final price.
I wish we had that here.
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