Sales Tax on Discounted Items

[GPack]

My company runs a monthly coupon to discount items on shopsite. I noticed that the sales tax is being charged on the gross amount and not the discounted amount. Does anyone know how to correct this?

[Jim]

There isn't an option in ShopSite to figure tax on the after coupon price.

A coupon is generally considered a form of payment not a discount. If you look on almost all coupons it will say that it does not apply to tax. So the tax amount calculated must be the pre-coupon price.

[thesupermanager]

Jim,

Please note that this can vary from state to state. For example, Florida says for a retailer's coupon, such as the one the poster described, sales tax is assessed on the reduced price:
http://dor.myflorida.com/dor/tips/tip03a01-20.html