Grocery Store Coupons

95.1. Since a store is reimbursed by the manufacturer for the amount of a manufacturer's coupon, the consumers sales and service tax is computed on the gross sales price without any deduction for the coupon. To illustrate: a box of laundry detergent sells for $2.50 and the purchaser has a manufacturer's coupon worth $.50. The consumers sales and service tax is computed on the gross sales price of $2.50.

95.2. In the case of coupons issued by a grocery-type store for its own product, the amount of the coupon is not subject to consumers sales and service tax. To illustrate: a box of laundry detergent sells for $2.50 and the purchaser has a coupon issued by that store worth $.50. The consumers sales and service tax is computed on the net sales amount of $2.00. This is considered to be a discount given by the store.