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Old 02-21-2015, 12:57 PM
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KeepingItReal KeepingItReal is offline
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Default TAX Explanation

Look's like we'll just keep paying the most sales tax. Though it appears the tax was overcharged there is really no interest in fixing the problem. It's only when we are taxed too little that it gets much attention apparently.

Sam's corporate said it was a Sam's reduction or a dealer's discount and not a Turbo Tax reduction so according to the reply from FL the tax should have been applied to the reduced price.



Florida's Reply:

From: Tax Information
Date: 2/20/15 5:00 PM
Subject: Response (control #189748)

From: Florida Department of Revenue, Tallahassee

The Department of Revenue has received your inquiry asking about application of sales tax to discounted items of tangible personal property at retail.

Per Rule 12A-1.018, Florida Administrative Code, “A coupon or refund issued directly by the manufacturer is not to be construed as a reduction in selling price by the dealer”, and as such, tax would be applied to the original cost of the item.

Conversely, also per Rule 12A-1.018, Florida Administrative Code, “A dealer’s discount is a reduction in selling price if taken at the moment of sale or purchase of a product”, and in that case, the tax would be applied to the reduced price of the item.

Essentially, while the manufacturer’s discount does not reduce the price to the merchant, and threrefore does not reduce the tax on the item, a store coupon or discount directly reduces the amount of money taken in by the store for the item, and as such the tax would be based upon the reduced price.

Pertinent legal citations may be found in our Revenue Law Library at https://revenuelaw.state.fl.us/Pages/Home.aspx.
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Last edited by KeepingItReal; 02-21-2015 at 08:58 PM.