Alabama Sales Tax (Birmingham, Fulton: coupons, home, purchase)

[Marc45002]

It has been hard getting used to an 8% sales tax rate that includes food. However, today I was shocked that Costco charged us sales tax on original price before coupons; is that right? They even charged us sales tax on the original price of an item that was marked down but did not require a coupon.

What are the rules? Should we have to pay sales taxes on original price of an item if it has been marked down? If not, why would Costco charge the tax?

thanks,

marc

[friday13]

Originally Posted by Marc45002

It has been hard getting used to an 8% sales tax rate that includes food. However, today I was shocked that Costco charged us sales tax on original price before coupons; is that right? They even charged us sales tax on the original price of an item that was marked down but did not require a coupon.

What are the rules? Should we have to pay sales taxes on original price of an item if it has been marked down? If not, why would Costco charge the tax?

thanks,

marc

You're an engineer, aren't you?
That's the rule: tax'em to death. lol
Seriously, get used to it. I'm surprised you think that's a Costco thing, or even AL. It's accounting and taxation. Now, imagine the tax man getting getting only 8% on $30 (with a coupon) instead of $50. Now, if you were the taxman, how would you like to be 'shortchanged' that way?

On a side note, I'm surprised nobody creatively thought of sales taxing the purchase of a home the first year (8%), and only real property tax (5.8%) after that.

[Newsboy]

Just one more reason not to live in Alabama -- the nations most regressive tax system. Sales tax in GA is 4 cents -- with groceries and prescription drugs exempt. Most counties have voted an additional 1-2 cents special purpose local tax for schools or capital projects (jails, roads, recreation) for a maximum of 6 cents. DeKalb and Fulton counties ONLY pay 7 cents, with the extra penny going to MARTA, which the city of Atlanta has a temporary 1-cent levy to fun sewer improvements.

Yes, Georgia has higher real property taxes than Alabama but NOT personal propertyy (ad valorum, etc). Alabama also has higher user fees and service taxes as well as occupational tax and local income tax which is just absurd.

The 1.5 years I lived in Alabama almost broke me -- a third of every dollar I made vanished, as opposed to only about 25 percent in Georgia.

[Southlander]

I believe only Birmingham has a local income tax.

[ghett61]

If you just eat out all of the time, then you do not have to worry about being taxed on your groceries.

[Brave Stranger]

Come up to New Hampshire: no sales tax, no income tax, no capital gains tax, no death tax

[Maya Blue]

Originally Posted by Newsboy

The 1.5 years I lived in Alabama almost broke me -- a third of every dollar I made vanished, as opposed to only about 25 percent in Georgia.

Methinks you're doing something wrong.

[ColdCanadian]

Originally Posted by friday13

You're an engineer, aren't you?
That's the rule: tax'em to death. lol
Seriously, get used to it. I'm surprised you think that's a Costco thing, or even AL. It's accounting and taxation. Now, imagine the tax man getting getting only 8% on $30 (with a coupon) instead of $50. Now, if you were the taxman, how would you like to be 'shortchanged' that way?

On a side note, I'm surprised nobody creatively thought of sales taxing the purchase of a home the first year (8%), and only real property tax (5.8%) after that.

Tax man being short-changed when something is on sale?!? Please...

Where I live sales tax is 13%,
and it ALWAYS is charged to the price YOU pay, on sale or otherwise.
So say something is originally $100 and it's on sale for $20.
They add the 13% to the $20, not the $100, so you would pay $22.60, NOT $33.00.

[Southlander]

I think you got taken for a ride.
I'd go back to Costco and complain. Tell them to show you the statute that says you pay full sales tax on a discounted item.
Now...that might be true for coupon items, but it shouldn't be for items on sale.

[djmaxwell]

Originally Posted by Marc45002

What are the rules? Should we have to pay sales taxes on original price of an item if it has been marked down? If not, why would Costco charge the tax?

I believe third party coupons are taxed at the original price whereas direct coupons are taxed at the lowered price.