Syracuse (WSYR-TV) - Karen Perwitz and her daughters recently went to the Dunkin' Donuts on Downer Street in Baldwinsville and bought some hot chocolate using several coupons.
Karen noticed when paying the balance she was charged sales tax on the original price of the beverages, not on the discounted cost. Is that legal, she asks?
According to the New York State Department of Taxation and Finance, it can be. It depends on where your coupon came from.
If it is a manufacturer's coupon, your Dunkin' Donuts store would need to be reimbursed by the company for the discount.
So, the full price is still subject to the applicable sales tax.
Think of it this way: If someone pay for half of your coffee, the total transaction (that is, dollar amount) will still be taxed.
On the other hand, if the store itself reduces the price of an item, it can only tax the customer on the price that he or she paid.
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