Sales Tax State Activity Update - August 2004

Wyoming Issues Guidelines Regarding Taxability of Coupons

The Wyoming Department of Revenue has issued guidelines with respect to preferred card discounts, manufacturer’s and in-store coupons.

In-store coupons and preferred card discounts are generally offered as an incentive to purchase particular products held for sale. The Department of Revenue considers the latter a negotiated reduction in price at the time of the sale, and therefore is excluded from the basis to which the tax rate is applied.

A manufacturer’s coupon is an agreement with a third party vendor. In this case, the vendor is reimbursed for the face value of the coupon plus a handling fee. Transactions involving manufacturer’s coupons do not reduce the tax basis, and the tax is applied to the full purchase price.

(Department of Revenue Excise Tax Division Bulletin #6, April 8, 2004) 08/04

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