Is Sales Tax Calculated Before or After Discounts?

Consumers are now asking questions about coupons and sales tax, particularly those who shop at Massachusetts’ Walmart locations. Some consumers allege that coupons and sales tax are being mishandled by cashiers at the register.

These consumers claim that they used a manufacturer’s coupon, such as when checking out at a Massachusetts Walmart, but were charged sales tax on the item’s full price rather than the after-coupon price.

Several different states including Massachusetts, Missouri, Connecticut, and Texas require retailers to establish a sales tax tabulation after coupons are applied rather than before, leading some consumers to be frustrated about the management of these coupons and sales tax charges.

Without a thorough review of their receipt, consumers might not even realize that final prices after coupons and sales tax have not been calculated appropriately. Consumers who still have receipts and recently shopped at a Massachusetts Walmart should review their information to determine whether or not they have been affected by this issue since some purchasers might have been charged too much.

The consumers across the affected states often try to check out at a traditional register and expected that the coupons and sales tax amounts would be reduced based on the decrease in price from applying the coupon. However, many of these consumers now allege that the coupons and sales tax prices were far too high, meaning that the consumer had to pay the sales tax amount on the full price of the regular item when it should have been reduced by the coupon’s appropriate discount.

Walmart has already agreed to pay a $45 million settlement associated with another class action lawsuit against them because of alleged mischarging of coupons and sales tax.

Sales Tax and Coupon Use

According to these consumers frustrated over coupons and sales tax mismanagement, retailers must calculate sales tax based on the purchase price of the item in question. This includes the purchase price after every discount has been applied, including coupons that were used at locations such as a Massachusetts Walmart or Illinois Target.

Plenty of consumers choose to use coupons as a benefit to reduce the overall price of the item being purchased, but also to reduce the total amount of sales tax applied. Other discounts may affect the overall purchase price and coupons and sales tax price charged including store discounts, store coupons, manufacturer’s coupons, and employee discounts.

Retailers in certain states are supposed to recalculate the total amount of sales tax due after any of these discounts have been applied. These coupon and sales tax discounts apply only to items that are taxable. Many grocery items are not taxable in most states, but other items purchased at locations such as a Massachusetts Walmart should have their sales tax amount appropriately reduced in line with any coupon for discount amounts.

Those consumers who have discovered that they have paid too much as a result of coupons and sales tax that were mishandled by a retailer may be interested in participating in a class action lawsuit investigation against retailers who have allegedly carried out this practice.

Join a Free Walmart Coupon Sales Tax Class Action Lawsuit Investigation

If you used a coupon at a Walmart store in Connecticut, Massachusetts, Missouri, or Texas, and the retailer charged sales tax based on the purchase price before the coupon was applied, you may qualify to file a Walmart coupon class action lawsuit.

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