Texas sales tax on discounted charges

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Subject Author Date Texas sales tax on discounted charges Senior Citizen 02-15-2009  Re: Texas sales tax on discounted charges Alan 02-15-2009  Re: Texas sales tax on discounted charges Katie 02-16-2009
Posted by Senior Citizen on February 15, 2009, 9:38 pm Please log in for more thread options When I go to a restaurant and they give me a 10% senior citizen discount as an example, should the sales tax be applied to the price before the discount, or to the 10% discounted price? ========================================= MODERATOR'S COMMENT: That depends on the state, and perhaps local, regulations. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on February 15, 2009, 10:57 pm Please log in for more thread options Senior Citizen wrote: > When I go to a restaurant and they give me a 10% senior citizen > discount as an example, should the sales tax be applied to the price > before the discount, or to the 10% discounted price? > > ========================================= MODERATOR'S COMMENT: > That depends on the state, and perhaps local, regulations. > The tax should be based on the price after the discount. See any of the Texas Controller of Public Accounts publications. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Katie on February 16, 2009, 5:02 pm Please log in for more thread options > When I go to a restaurant and they give me a 10% senior citizen > discount as an example, should the sales tax be applied to the price > before the discount, or to the 10% discounted price? > > ========================================= MODERATOR'S COMMENT: > That depends on the state, and perhaps local, regulations. > The actual sales price is the measure of the tax. If the discounted price appears on your sales check, the regular retail price never goes on the restaurant's books and the discount is not a problem. If the discount is taken AFTER the sale has been recorded (e.g., in the case of a discount for prompt payment of an invoice), the seller can deduct it from gross sales when the sales/use tax return is filed. See Tex. Tax Code Ann. §151.007(c)(1) ; Tex. Admin. Code §3.301(d). Katie in San Diego -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Texas sales tax question April 25, 2009, 1:37 pm Re: Page charges August 17, 2009, 12:47 pm Re: Page charges August 17, 2009, 4:44 pm Re: Page charges August 17, 2009, 11:49 pm Sale of 1st Home in Texas September 7, 2008, 6:20 pm Re: Sale of 1st Home in Texas September 8, 2008, 12:50 pm Where do I enter "dividend charges?" February 18, 2010, 8:32 am Working in Kentucky and living in Texas January 28, 2007, 6:13 pm Voluntary page charges as deductible donations? April 10, 2007, 10:25 am Gross sales and services on NYS Sales Tax form ST-101? March 2, 2009, 11:46 pm