Legal Question in Tax Law in California
when you use a coupon do you pay the sales tax on the full price before the coupon or the adjusted price.
Asked on 10/30/10, 3:32 pm
1 Answer from Attorneys
George Shers
Law Offices of Georges H. Shers
My guess would be on the full price because what you are paying for the item is the discounted price plus the coupon. When the merchant has to turn the sales tax over to the state, he has to pay what the item was "sold' for, which would be the fullprice. So if the ;merchant let you pay taxes on the discounted price he would end up having to pay additional sales tax, which is not something he would want to do.
Answered on 11/06/10, 7:06 pm
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