Sales Tax Before Coupons Deducted?

[cheapdate29]

I live in TX but visit CO frequently and shop there especially when my local stores are out of stock. In TX, the sales tax is calculated on the amount after the coupons have been deducted when seems like that's the way it should be.

In Colorado, I bought 2 John Frieda products totaling $10.50 and used a Target coupon for $3 stacked with 2 man Qs at $3 each for a total of $9. I paid sales tax on $7.50, the balance after the Target coupon came off. WTH??

How can the state charge tax this way and if they're ripping off the public why would the Target coupon be exempt? Is this a common practice in other states too? It just seems weird (and illegal) to pay tax on any amount other than what is actually owed at time of sale.

[JulieDB]

Here in WA, the tax must be added before the coupon is subtracted. I've seen that extreme show and don't understand how they can take off the tax. That won't work here. The customer must pay the sales tax.

[MaMaHaHa]

Here in Louisiana-you always pay the sales tax on the pre-coupon price...so-I will never actually get anything for free...but it's free except for tax. Have been thinking of driving across the state line just to try it out in Texas.

[belinda2]

Sales tax will be individual per state law.

[rebate_queen]

Yeah, each state is different, whether they do it before coupons or after coupons. In my state it is before, so I never get anything really for "free" unless it is food (no tax on food here).

[kjo890]

In Michigan, if it's a household or non-food item, you pay sales tax before the coupon is deducted.

[amylynne01]

What they said. In MA, food is not taxed, but other non-food items are. Coupons also reduce the taxable amount like in TX. In NH, there is no sales tax, so no worries there.

[clippyclippy]

Here in NC tax is calculated pre-manufacturer coupon. Store coupons reduce the sales tax, I guess they are considered to be like a store sale, and just like you wouldn't pay tax on full retail, the store coupons bring down the taxable amount.

[cheapdate29]

Here in NC tax is calculated pre-manufacturer coupon. Store coupons reduce the sales tax, I guess they are considered to be like a store sale, and just like you wouldn't pay tax on full retail, the store coupons bring down the taxable amount.

I guess it's more common than I thought since the store coupon reduced the taxable amount. TX also doesn't tax food and I can be thankful for that as well!