Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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460.0000 REIMBURSEMENT FOR SALES TAX—Regulation 1700

Annotation 460.0023

460.0023 Discounts Equal Tax Reimbursement. A retailer offers a discount on selected lines of merchandise. For purposes of administrative convenience, the discount rate is set to equal the rate of sales tax reimbursement. Since the sales tax is equal to the discount, no separate charge for sales tax reimbursement is made to customers. All of the sales at selected registers will be discounted. The retailer will be in compliance with Regulation 1700 as long as he fully advises his customers before the sale that the particular merchandise sold at the particular register will receive a discounted price and that a resulting price of taxable items does include reimbursement for sales tax. 4/7/77.