Amazon and tax

[Aerovette]

I think Amazon is ripping me off on tax.

Regular purchase...

Item - 36.98
S&H - 0.00
Tax - 3.05 (on 36.98)
Total 40.03

I have a card that earns points so when I apply the points, it looks like this...

Item - 36.98
S&H - 0.00
Tax - 3.05

Total - 40.03
Points - -25.96
New total - 14.07

Here is how I believe it SHOULD be...

Item - 36.98
Points - -25.96
S&H - 0.00
Total - 11.02
Tax - .91 (on 11.02)
New total - 11.93

They are taxing me on the entire amount before deducting the reward points.

If I buy a buy one get one free item, I don't pay tax on the original total, I pay tax on the discounted total.

[MadInNc]

Points have a $ value, so tax

Case in point, SIL used Marriott points. They sent him a 1099

Thank Uncle Joe Blunder

[Aerovette]

Originally Posted by MadInNc

Points have a $ value, so tax

Why am I not taxed on a free appetizer in a restaurant?

Or when I have a 50% coupon?

[MadInNc]

Originally Posted by Aerovette

Why am I not taxed on a free appetizer in a restaurant?

Or when I have a 50% coupon?

Shhhh or they might in future….

[Rodnok1]

Correct you will be taxed before points used, also in stores you are taxed at pre coupon prices i believe.

[Aerovette]

Originally Posted by Rodnok1

Correct you will be taxed before points used, also in stores you are taxed at pre coupon prices i believe.

Nope. Tax is on the total due.

[DJ_Critterus]

Originally Posted by Aerovette

Nope. Tax is on the total due.

do you think the government wants taxes collected on a discount or pre-discount total?

At restaurants, I do notice getting taxed on the post-discount total, though, when they do the tickets by hand (ex. Awful House). At restaurants and places where the bill is tallied by computer, I notice taxes are taken for the total before discount, though,

[Aerovette]

Originally Posted by DJ_Critterus

do you think the government wants taxes collected on a discount or pre-discount total?

At restaurants, I do notice getting taxed on the post-discount total, though, when they do the tickets by hand (ex. Awful House). At restaurants and places where the bill is tallied by computer, I notice taxes are taken for the total before discount, though,

So if I go to a restaurant with a "free meal" coupon, I will pay tax on the meal?

No sir. I will get a free meal and pay nothing.

[DJ_Critterus]

Originally Posted by Aerovette

So if I go to a restaurant with a "free meal" coupon, I will pay tax on the meal?

No sir. I will get a free meal and pay nothing.

I'm just telling you my experience

[Aerovette]

Originally Posted by DJ_Critterus

I'm just telling you my experience

Then we are BOTH getting ripped off.

[Louie Detroit]

It’s your state that is ripping you off with 8 and a quarter percent sales tax.

[Aerovette]

Originally Posted by Louie Detroit

It’s your state that is ripping you off with 8 and a quarter percent sales tax.

I understand that I have to pay state tax. The issue I have is paying tax on the pre-discounted amount.

If I buy something that is $100.00 and I have a $25.00 discount coupon, I should pay tax on $75.00, not $100.00.

[PLRX]

I buy from A.

[KenHorse]

Sales tax? What's that?

[Aerovette]

Originally Posted by KenHorse

Sales tax? What's that?

It's like being mugged, but you see it coming and you don't resist.

[Bill]

Originally Posted by Rodnok1

Correct you will be taxed before points used, also in stores you are taxed at pre coupon prices i believe.

When I worked at a drug store in HS, back when we still used price sticker guns and manual credit card imprint machines, we charged tax when someone brought in coupons for a free whatever. I think that kind of promotion was more common back then.

[BRUIZER]

Sales tax?
GTFOH!
None of that chit here in MT.

[Vette40th]

Politics start local. Get involved, vote wisely.. Our county has been raising taxes. When I first got here 12 years ago, it was 6% sales tax. We are at 9.5% with special taxes thrown in each time I buy here.
In Hawaii, they had a Kamaaina ( local resident) discount you could use if you had a Hawaii license. Maybe we should institute that in our own hoods.. Make the tourists pay our taxes, instead of us.
Or, tell them to stop spending money on BS..

[Aerovette]

Originally Posted by Vette40th

Politics start local. Get involved, vote wisely.. Our county has been raising taxes. When I first got here 12 years ago, it was 6% sales tax. We are at 9.5% with special taxes thrown in each time I buy here.
In Hawaii, they had a Kamaaina ( local resident) discount you could use if you had a Hawaii license. Maybe we should institute that in our own hoods.. Make the tourists pay our taxes, instead of us.
Or, tell them to stop spending money on BS..

I'm not objecting to the tax. I am objecting to the method of calculation.

[Vette40th]

I am against tax without representation.. But i digress.