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Path: utzoo!watmath!clyde!burl!ulysses!mhuxl!aluxe!2141smh
From: 2141smh@aluxe.UUCP (henning)
Newsgroups: net.consumers,net.legal
Subject: Re: Sales tax on coupon items
Message-ID: <347@aluxe.UUCP>
Date: Sun, 2-Sep-84 20:00:37 EDT
Article-I.D.: aluxe.347
Posted: Sun Sep  2 20:00:37 1984
Date-Received: Mon, 3-Sep-84 12:15:23 EDT
References: <4345@brl-tgr.ARPA> <4347@brl-tgr.ARPA>
Organization: AT&T Bell Laboratories, Allentown, PA
Lines: 10

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From the keys of Steve Henning, AT&T Bell Labs, Reading, PA aluxe!2141smh

The distinction is not whether the coupon is a manufacturer's or store coupon
but whether the coupon is:
   1)  WORTH X DOLLARS TOWARD THE PURCHASE OF SAID ITEM or
   2)  ENTITLES YOU TO A FREE ITEM OR A DISCOUNT ON A ITEM.

In the first case the coupon is used as money and is taxed as such.  In the
second case the coupon changes the price and is not taxable.