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Path: utzoo!utcsrgv!dave
From: dave@utcsrgv.UUCP (Dave Sherman)
Newsgroups: net.consumers,net.legal
Subject: Re: Sales tax on coupon items
Message-ID: <5120@utcsrgv.UUCP>
Date: Sun, 2-Sep-84 09:19:27 EDT
Article-I.D.: utcsrgv.5120
Posted: Sun Sep  2 09:19:27 1984
Date-Received: Sun, 2-Sep-84 09:25:56 EDT
References: <4345@brl-tgr.ARPA> <4347@brl-tgr.ARPA>
Reply-To: dave@utcsrgv.UUCP (& Sherman)
Organization: The Law Society of Upper Canada, Toronto
Lines: 16


The legal determination of whether sales tax will have to be paid on a
free item may depend on the wording of the legislation implementing
the sales tax. In Ontario, the Retail Sales Tax Act specifies that tax
is to be paid on the "consumption or use" of goods. The purchase is
simply a convenient place to collect it. If your state legislation
uses similar language, you would have to look at the wording of the
provision which defines the basis on which the tax is calculated.
It may be arguable that you should pay tax on the value of what you
are receiving rather than on the price you are paying.

Dave Sherman
The Law Society of Upper Canada
Toronto
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