Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
295.0000 GROSS RECEIPTS
295.0950 Merchandise Redeemed with Frequent Buyer Dollars. A customer can earn credits called "frequent buyer dollars" by buying a manufacturer's product from retailers. The earned credit can be applied towards the purchase of certain slow moving merchandise produced by the manufacturer. The designated merchandise is sold to the retailer at a much reduced price. The retailer sells the item to the customer for a specific cash price if the customer redeems a certain number of frequent buyer dollars.
Upon redemption, the frequent buyer dollars are considered to be a trade discount and should not be included in the measure of tax. 12/11/91.