Sales Tax State Activity Update - February 2004

Taxability of Discount Coupons Reviewed in Florida

In a recent Tax Information Publication, the Florida Department of Revenue issued guidance on the treatment of purchases made using coupons, vouchers, gift certificates, as well as discounts taken and rebates received from manufacturers.

If a third party reimburses the retailer for the value of the coupon or rebate it is included in the taxable base. Discounts for which the retailer will not receive any reimbursement are excluded from the taxable base.

Vouchers and gift certificates are taxed on the retail price of the item for which they are redeemed. (Tax Information Publication, No. 03A01-20, Florida Dept. of Revenue, 12/17/2003) 02/04

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