Quote:
Originally Posted by Cobb
Some stores make you pay all the taxes even if you use a coupon. Many coupons say even the same. Usually its like you said.  |
No, it's usually state law that mandates whether sales tax is collectable on the full value of the item, even though the item might be "free" with a coupon. It depends upon which state you live in. In such states, the merchant is put upon to be the tax collector for the State.
Where the tax money goes after it is collected by the merchant is unclear. Both the State and the merchant get to try to get a piece of it, in one way or the other.
Both the merchant and the State usually don't care how they get it, as long as it can be demanded of the customer.
Sales tax, once collected, becomes slush fund money once it leaves your pocket.