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From: essachs@ihuxl.UUCP (Ed Sachs)
Newsgroups: net.consumers,net.legal
Subject: Re: Sales tax on coupon items
Message-ID: <1329@ihuxl.UUCP>
Date: Tue, 4-Sep-84 11:44:58 EDT
Article-I.D.: ihuxl.1329
Posted: Tue Sep  4 11:44:58 1984
Date-Received: Thu, 6-Sep-84 03:33:17 EDT
References: <4345@brl-tgr.ARPA>
Organization: AT&T Bell Labs, Naperville, IL
Lines: 18

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Here in Illinois, you pay sales tax on manufacturers' cents off
coupons, but not on the retailers' coupons.  The retailers' coupons
are considered a reduction in the purchase price, and the sales tax
is charged on the actual purchase price.

Regarding sales below the minimum in the tables (are there any
these days -- what can you buy for a dime?) in most states that
I'm familiar with (including New York and Illinois), the retailer's
tax obligation is computed as a percentage of gross sales, and the
actual tax collected is irrelevent, or, sometimes, the retailer
must remit the larger of the two amounts.  Thus, the guy who sells
10 cent items to school children loses.
-- 
				Ed Sachs
				AT&T Bell Laboratories
				Naperville, IL
				ihnp4!ihuxl!essachs