CVS ~ Other: ECB does not lower tax but $/$ coupons does!?

[AndroAsc]

I'm not too sure if this is already common knowledge, but I finally figured out the discrepancies in my calculated value versus the amount I had to pay.

Correct me if I am wrong, but:
1) You pay sales tax on the selling price of the item.
2) Manufacturer coupons only give dollars off, but you will still need to pay sales tax on the original price of the item (before coupons).
3) Same applies for ECBs as well, they give dollars off.
4) However, I found out that $/$ coupons is calculated differently by the machine. It deducts the total "taxable" amount from the order.

Confused?

For e.g. I buy a $2.50 Crest Toothpaste with a $1.00 Manufacturer Coupon and $1.00 ECB. Assuming 6% sales tax, I will pay:
Pay = (2.50 - 1.00 - 1.00) + (2.50 x 0.06) = $0.65

BUT, if I buy a $2.50 Crest Toothpaste with a $1.00 Manufacturer Coupon and a $1.00 off $2.00 CVS coupon (let's pretend there was such a coupon), and assuming 6% sales tax, I will pay:
Pay = (2.50 - 1.00 - 1.00) + ((2.50 - 1.00) x 0.06) = $0.59



I just realized this model of calculating taxes was the only way I could account for the discrepancy in my calculations. Have others experienced similar stuff?

I live in MI btw, so things maybe be different at other places.

[EshuBarakeno]

You've got it right. Store coupons aren't taxed. Some time last year the ECB's started ringing up as CVS MFR coupons as opposed to just CVS coupons so ECB's are now taxed. The $/$$ is still just a CVS coupon so it's not taxed.

[amy99s]

Green bag tag ecb take off the tax on that amount too because they are store coupons. I found that out when I did back to back identical transactions once and used a $1 green bag tag to pay on one transaction and a $1 ecb from a deal to pay on the other one.

[Castingbread]

Also, the extra bucks they "force" to print with a rain check take tax off.

[meggers]

Originally Posted by Castingbread Also, the extra bucks they "force" to print with a rain check take tax off.

Get ooooouuuuutttttt! Seriously?!

[cheapcheap]

I did two identical transactions, paid tax-only on one and nada on another. It was a few weeks ago with $1/2 paper products ECB. The paper towels were on sale $1/2. Maybe it depends on when the ECBs are scanned -- before or after hitting total?!

[a13049]

It depends on you local/state laws. In kcmo we only pay taxes on the final total, no matter what kind of Q we use and what order we use them in....so in order to answer your question you would have to know how tax is calculated in your area

[meggers]

Originally Posted by a13049 It depends on you local/state laws. In kcmo we only pay taxes on the final total, no matter what kind of Q we use and what order we use them in....so in order to answer your question you would have to know how tax is calculated in your area

Yup! I have made the trip into Tiger territory when it was worth it. We now have 9% sales tax in KS! That's just disgusting! When I can save at least 15.00 in tax, I go for it all in one day & do mega shopping deals over around Waldo.

[CW&M Mom]

Originally Posted by meggers Yup! I have made the trip into Tiger territory when it was worth it. We now have 9% sales tax in KS! That's just disgusting! When I can save at least 15.00 in tax, I go for it all in one day & do mega shopping deals over around Waldo.

YUP! whenever I can...I do my megga shopping in Joplin MO for the very same reason.

Nothing takes Kansas tax away....

[meggers]

Originally Posted by cori n wes mom YUP! whenever I can...I do my megga shopping in Joplin MO for the very same reason. Nothing takes Kansas tax away....

November might!