Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
280.0000 GIFTS, MARKETING AIDS, PREMIUMS AND PRIZES— Regulation 1670
280.0970 Samples. A taxpayer purchases items used by its salespersons as product samples. The supplier pays a rebate to the taxpayer based on the taxpayer's annual volume of purchases for resale. The rebate is limited to a maximum which equals the cost of the samples purchased. The rebate is not regarded as a reduction in the price paid for the samples, thus tax is due on the samples based on the full amount originally paid for them. 1/12/76.