RE: Sales Tax, State of California
Went to a national retailer for a refrigerator-freezer. It sells for about $1,500 at several retailers, but one of the retailers ("A") charges sales tax on the supposed retail price of $2,000. Except for this one retailer ("A"), the other places charge sales tax only on $1,500.... the actual price the consumer pays. Although it is termed a manufacturers rebate, the rebate is not sent to the consumer. The rebate reduces the price at the point of sale.
So the $500 taxed difference is only about $50. In asking the main office of "A" as to why they charge tax on the list price and not the sales price, the answer was "internal policy".
One would think that a business would like to charge the least sales tax so that the consumer sees a lower price. To make matters more complicated, one retail place, also National, offered to see the unit at $1,500 including tax.
1. Is there a legal requirement that a retailer charge tax on a list price which is more than the sales price ?
2. Is it legal to sell an item to a consumer and give a discount by making the sales tax included ?
Went to a national retailer for a refrigerator-freezer. It sells for about $1,500 at several retailers, but one of the retailers ("A") charges sales tax on the supposed retail price of $2,000. Except for this one retailer ("A"), the other places charge sales tax only on $1,500.... the actual price the consumer pays. Although it is termed a manufacturers rebate, the rebate is not sent to the consumer. The rebate reduces the price at the point of sale.
So the $500 taxed difference is only about $50. In asking the main office of "A" as to why they charge tax on the list price and not the sales price, the answer was "internal policy".
One would think that a business would like to charge the least sales tax so that the consumer sees a lower price. To make matters more complicated, one retail place, also National, offered to see the unit at $1,500 including tax.
1. Is there a legal requirement that a retailer charge tax on a list price which is more than the sales price ?
2. Is it legal to sell an item to a consumer and give a discount by making the sales tax included ?
Local Taxes: Must a Retailer Charge Sales Tax on the Full Price Before Manufacturers Rebate
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