An in-store coupon or coupon issued by the retailer for which no reimbursement is received is considered a trade discount. The taxable amount is the net amount paid for the item after deducting the value of the in-store coupon. Premiums A premium or gift given away with the sale of a product that is subject to tax is considered part of that sale, and the purchase of the premium or gift by the retailer is not taxable. Items given away without requiring a specific purchase and items given away as advertising are considered consumed by the retailer, and the retailer must pay tax on the retailer s cost of those items. If a customer is given a partial refund or allowance, the customer is entitled to a refund of sales tax on the amount refunded or credited.
Bottle deposits Bottle deposits are subject to tax when soft drinks are sold.
When bottles are returned for refund of the deposit, sales tax should also be refunded. Bottle deposits are exempt from tax when purchased with food stamps or WIC vouchers. When tax is included in the sale price When tax is included in the sales price of items sold at special events, such as t-shirts, the tax must be calculated separately. To determine the sales price without tax, the proceeds of an accounting period are divided by the tax adopted in the community. Tax is included in the vended price.