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Coupons might discount prices, but here’s why you may still get taxed at full-price

If you’re getting ready to do some holiday shopping there’s a coupon rule you should know about.

It has to do with the amount of sales tax you pay when making a coupon-aided purchase.

For example, say you’re buying an item for $100, and you have a $15 coupon. Depending on where that coupon originated – you may pay sales tax on the discounted or original price.

It’s something that a lot of people overlook.

Recently, News10NBC looked into it after a Farmington woman shared a similar experience. She used a coupon and was charged sales tax on the original price.

Store-issue coupons reduce the amount that’s subject to sales tax. However, coupons issued by a manufacturer do not.

Say you’re buying a coffee maker at Walmart, and it’s discounted 50% from regular price. If the manufacturer issued the coupon that got the price down 50% – then you’ll pay full-price sales tax on it. If the store simply offered a coupon to discount the item – then you’ll pay sales tax at the discounted price.

Keep this in mind while using coupons. Especially those inside newspapers around Thanksgiving and Black Friday.