Do You Pay Tax on Price Before Instant Rebate or After Rebate Deducted?

Discussion in 'After Hours Lounge (Off Topic)' started by Arthur S, Jan 17, 2006.

  1. Arthur S

    Arthur S Cinematographer

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    I passed up a deal on a Moto Razr that had a $250 Instant rebate. I figured that I would have to pay tax on the full $300 price of the phone.

    Someone else said I would not pay sales tax on the $250 because it was "instant".

    Which is correct?

    Thanks
     
  2. Bill_D

    Bill_D Supporting Actor

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    In my experiences, I was taxed after the instant rebate. I believe instant rebates are handled just like discounts.
     
  3. Christ Reynolds

    Christ Reynolds Producer

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    tax on $300 isnt THAT much, is it? here in MA, it would be $15.

    CJ
     
  4. Carlo Medina

    Carlo Medina Executive Producer

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    In my experience, instant rebate is taxed post-rebate (as Bill says, just like a discount). Mail-in rebates you are taxed the purchase price.
     
  5. Mark Philp

    Mark Philp Second Unit

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    It depends on what state you're in.
     
  6. JohnRice

    JohnRice Lead Actor

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    The term "Instant Rebate" is just marketing BS. There is no rebate. It's just a sale price. You pay tax on the purchase amount, which is after the "rebate". In fact, it should be illegal (tax fraud) to charge sales tax on the higher price.
     
  7. Chris Lockwood

    Chris Lockwood Producer

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    JohnRice has the best answer so far. [​IMG]

    BTW, around here if you buy something with a manufacturer's coupon, you pay tax on the price before the coupon is subtracted. [​IMG]
     

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