STATE OF COLORADO
(Retailer coupons that reduce the sales price). In this case, the manufacturer is the retailer and is selling the product at a discounted price to the distributor / purchaser. However, the retailer’s coupon is not analogous to the present case in some respects. The discount here occurs, if at all, only after the initial sale to the distributor.
Actived: 5 days ago
Sales Tax Guide Department of Revenue
Retailers may accept coupons from their customers for a reduction in the amount paid by the customer. For tax purposes, coupons are classified as either manufacturer's coupons or store coupons. A manufacturer's coupon is issued by the manufacturer and allows the customer a reduction in the sales price of the product upon presentation of the
Department of Commerce’s National 102.7(a)(3) defines
household to receive two coupons that are each good for up to $40 off the purchase of a television converter box. As an example, you state that a converter costing $59.99 would only cost $19.99 to the ultimate purchaser. Your question is whether the coupon reduces the taxable base of the converter.