Coupons

Retailers shall include in their taxable receipts the exchange value of coupons or redemption certificates taken from customers, if such coupons or certificates are redeemed by a wholesaler or others. The exchange value of coupons or certificates issued by the retailer as store coupons, and not redeemable by wholesalers or others, must be treated as cash discounts not subject to sales tax. Sales of gift certificates or other forms of credit which may be redeemed by the holder for equivalent cash value are deposits or prepayments and are not subject to tax when sold. However, the value of these certificates is taxable when redeemed if they are redeemed for taxable goods or services.