CVS charging tax on pre-ECB total?

[server18]

We at work have two different types of coupons and we had to change the way we ring in one of them.

We are paying more taxes!!! CHANGE - sound familiar???

[jimboli]

Keep in mind that every state is different. In NY, if the reduction is "store" based (i.e. CVS marks down an item or provides the EB), the tax should be computed on the reduced price. If the reduction is from the manufacturer (or if the mfrg is reimbursing for the EB), then tax is charged on the full retail.

For example, if they put Coke on sale for $1 and the normal price is $1.50, if CVS is putting it on sale and not being reimbursed by Coke, then sales tax should be on $1. However, if Coke tells them to put it onsale and they will reimbuse them the 50 cents, then the tax should be on the full retail $1.50.

That being said, I think there is some confusion about what to do in a mixed transaction. Lets say you get an ECB for a non-taxable item (for an item that would not be subject to sales tax like cereal (in NY)) and try to use it against a taxable item. NY would say that you should be charged sales tax on the full retail since the ECB was for a non-taxable item. Really no different than a rebate program.

One other thing to keep in mind - all states and local taxing jurisdictions are hurting for money. Under the old system, you did not pay sales tax - but they needed to make it up somehow (service cuts, other fee increases). Now, you pay sales tax and maybe some of the service cuts or other fee increases can be decreased - or not go up as much. The government will get their money from us one way or another.

[maryccc]

I had a weird transaction today I bought the candle 6.99 and 8 small dove deo's 8.00 and 12 emerald nuts and I gave the 5/25 then .99 ecb then mfg coupons and my total was .68. I looked at my receipt and my subtotal says negative .50 it also has nc 8% tax .98 and nc 2% tax .20. Why do I have 2 taxes wth.

[maryccc]

What is that 2% tax? I can't understand what the extra tax is for could it be for coupons?

[Castingbread]

Originally Posted by maryccc What is that 2% tax? I can't understand what the extra tax is for could it be for coupons?

My guess is the 2% is the food tax on the nuts.

[maryccc]

That's what I thought too. THe nuts were $12 and I had $12 in coupons so they were free. 2 percent of 12 is .24

[Kishme]

I just moved from Indiana with an 7% tax rate to California with a 9.5% and this little thing called CRV haha. And the tax is pre-coupon. It's rough to spend $2-3 extra dollars per transaction, on the other hand I don't think it's going to deter my shopping patterns since I mostly only buy products I use and figure I'll end up paying the tax sooner or later anyway. However because of this, I doubt I'll ever carry multiple cards for multiple deals to profit from.

I don't know if this has always been true, but my subtotal can go negative as long as tax is greater.

For example, I had a transaction this week where ECBs allowed me to go -$1.89 and my tax was $1.90 so I paid $.01 out of pocket...actually the cashier just laughed and told me not to worry about it haha

[CyndiO]

Sales tax has me changing where I am shopping. I am lucky to work right on the state line of Kansas and Missouri. Kansas = pay tax on the full amount before coupons. Missouri = pay tax after. So now I'm going to try and do all of my deals - at least the larger ones - in Missouri. Yesterday I was able to get over $53 worth of merchandise after coupons and ECBs for $8 where in Kansas it would have cost me $12.13.

[sarahinFL]

Originally Posted by maryccc I had a weird transaction today I bought the candle 6.99 and 8 small dove deo's 8.00 and 12 emerald nuts and I gave the 5/25 then .99 ecb then mfg coupons and my total was .68. I looked at my receipt and my subtotal says negative .50 it also has nc 8% tax .98 and nc 2% tax .20. Why do I have 2 taxes wth.

I don’t know if this is going to make sense but here goes. Your taxable amount was reduced by $5 with the 5/25 since it is a CVS q. $5 is 18.53% of $26.99 (your subtotal before all q’s). Your food amount is $12 so you multiply that by 18.53% and get $2.22. Then subtract that amount from $12 and get $9.78. Your taxable food amount is now $9.78 and 2% of that is 20 cents. Same with the non-food…..

Non-food pre-coupon taxable amount= $14.99
Non-food taxable amount after 18.53% discount from 5/25 CVS q= $12.21
$12.21*8%= 98 cents

[maryccc]

Thanks but that is just too much math for me lol.
I was looking at my walgreens receipt and my total was 44.44 before tax and I was charged 3.56 for tax which is 8% but I bought some candy bars and didn't get the 2%. I wonder why? So rr's do count in tax but cvs coupons don't