Coupon Tax

[sdenimandlace1]

I have not seen that on my bill yet, we do use some coupons not many, just for thing we use every week or want to try.

[rghvac69]

I'm not surprised at all.

[BMaston12]

What is the deal with coupon tax. The more coupons you use the more coupon tax you have to pay. I really don't think it fair to tax coupons. What is you experience with coupon taxes?

I have never heard of coupon tax. How is it applied? Is this a national thing or state by state? I think it is really sad to tax people for using coupons. Why punish people for saving money?
BMaston12

[ngorecki]

  I have never heard of coupon tax either. Does that go state by state?

[lgemini]

I have never had coupon tax yet.

[pmagalei]

This is new to me. I have never heard of coupon taxes before. I guess there are a lot more coupon users who are taking advantage of this wonderful opportunity. I have seen some of my friends on FB shared pictures of their shopping success with coupons and I think the stores are starting to get a little smarter too. Nothing lasts exciting forever!!

[hawkeye3210]

What is the deal with coupon tax. The more coupons you use the more coupon tax you have to pay. I really don't think it fair to tax coupons. What is you experience with coupon taxes?

I have never heard of coupon tax. How is it applied? Is this a national thing or state by state? I think it is really sad to tax people for using coupons. Why punish people for saving money?
BMaston12

It's sales tax, so it's state by state. There's no such thing as a coupon tax.

[metsrock69]

I Know This Will Probably Hurt The Extreme Coupon Users. I Know They Hardly Like To Spend Money

[DeonaDollar]

I haven't heard of coupon tax, either. I know that I still have to pay sales tax; for example when I use a $1 coupon at Dollar Tree I still have to pay the 9 cents.
So, how does doubling work? I have seen on my receipt that I've had coupons that have doubled but I don't know how it works (and so I can't anticipate it for calculating savings.)

[cberman]

I have never heard of this either

[aflyingmonkey]

I don't know what coupon tax is.
But tax prior to the coupon being implemented is the norm here.  The government wants the money. 

There are no grocery stores here in So Cal that doubles coupons, not even Krogers/Ralphs.  Which is too bad, because those tricks the extreme couponers use can't be used here for the most part. 

[countrygirl12]

What is the deal with coupon tax. The more coupons you use the more coupon tax you have to pay. I really don't think it fair to tax coupons. What is you experience with coupon taxes?

You are not paying tax on the coupon.  You are paying tax on the items you purchase.

[lvstephanie]

I've never heard of a coupon tax either... I'm guessing it really is just your local / state's sales tax and not another tax just for the sake of using a coupon. This would also make sense why it isn't consistently applied because different stores have different policies. For example one store may use any overages to reduce a person's total amount owed, including any sales tax, while a second store won't allow the overages to cover any sales tax.

Note that different states also have different rules as to when to apply a sales tax and by how much when a coupon is used. For most states, if the coupon is from the retailer (where they do not get credit back from an outside party) this is usually seen as a true price reduction and hence the sales tax (if any) is applied only after the price is reduced by the coupon. Essentially the items purchased with these coupons are looked at like the item was on sale, and so the tax is only on the sale price.  However if the retailer would receive credit for any coupons that were used (such as in manufacturer's coupons where the manufacturer credits the store back for the coupon amount), then the full cost of the product gets taxed and then the coupon's reduction is applied.

Now although most states operate in this manner, there are a few states that treat all coupons like a price reduction regardless of whether the retailer gets reimbursed by the manufacturer (or by some other 3rd party). So in those states, the sales tax is only applied after the price of the item is reduced by the coupon (resulting in a lower tax that needs to be paid).

[southernhorizons]

I was worried for a minute, thinking there was a new tax! But it's really just the sales tax, which in most states you're supposed to pay on the original price of the item before the coupon. And some states exempt food, others don't, so you might have to pay the tax while using certain coupons but not others.

[vickysue]

Nothing is totally free. the tax you are paying is on the food as if you had not used a  coupon. The states and federal government still charge the store the tax on an item. So it is passed on to us.