Author Topic: In California if your buy something with a rebate you pay the full sales tax anyways...
paulg_68 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
even if the rebate is taken off the price at the cash register.

So suppose you buy a TV that is listed at $1200. However, the manufacturer is offering a $300 rebate which the store will credit you at the time of the sale. You pay $900 for the TV, but you pay sales tax as if you had paid $1200.

That doesn't seem fair.

coffee

 

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Z-Elder 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
It is a free country! Don't buy it! flag

 

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paulg_68 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Don't buy sales tax?

I'm not sure it's optional.

coffee

 

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Akza 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
maybe the company should just be offering the item at the discounted price in the first place.

go corporatism! flag

 

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Taliesihne 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
I believe that legally a rebate is applied after the sale.

The store just offers you a service that is convenient, but blurs that distinction some.

 

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Bonzoboy1 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Taliesihne posted:
I believe that legally a rebate is applied after the sale.

The store just offers you a service that is convenient, but blurs that distinction some.


Exactly a rebate can't be issued until a sale is complete, if it was it would be a prebate.

 

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Sansfear 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
That is why you order online and avoid the sales tax.

 

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paulg_68 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Taliesihne posted:
I believe that legally a rebate is applied after the sale.

The store just offers you a service that is convenient, but blurs that distinction some.

I understand what the technicality is. It just doesn't make sense.

The TV cost $900. You should pay sales tax on that amount.

Either that or you should get the sales tax back from the government when you get the rebate back from the manufacturer.

coffee

 

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ZigmundZag 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Sansfear posted:
That is why you order online and avoid the sales tax.

I live in Washington, where just about every online vendor has an office and the sales tax rate is 6 1/2%.

But I live close enough to Oregon to make major purchases there and they have no sales tax. dancing

 

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Bowlartz 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
paulg_68 posted:
Taliesihne posted:
I believe that legally a rebate is applied after the sale.

The store just offers you a service that is convenient, but blurs that distinction some.

I understand what the technicality is. It just doesn't make sense.

The TV cost $900. You should pay sales tax on that amount.

Either that or you should get the sales tax back from the government when you get the rebate back from the manufacturer.

coffee




So you would rather them remove the technicality, make you pay 1200 dollars plus tax up front then wait in a separate line to get your 300 dollars back in the form of a store rebate? Or your 30 cent coupon...and on and on. In this case, its actually the government not being dicks when they really could be.

 

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vn_nnanji 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Tax is pre-sale price. Mystery solved.

 

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paulg_68 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
vn_nnanji posted:
Tax is pre-sale price. Mystery solved.

Which doesn't make any sense. They should charge sales tax based on the price the item actually sells for.

coffee

 

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Afio 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
So in my case I would be paying $21.00 more. I am still getting $279.00 off.

Stop being so petty.

 

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Thugoneous 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
It's not that complicated.

 

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Eager_Igraine 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
paulg_68 posted:
vn_nnanji posted:
Tax is pre-sale price. Mystery solved.

Which doesn't make any sense. They should charge sales tax based on the price the item actually sells for.

coffee


The item actually sells for $1200. If you want to complain, go to the company that is offering the 'rebate' rather than simply selling the product for $900 it is probably almost worth.

 

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Special-Fred 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
If you didn't live in a liberal hellhole like cali you wouldn't have these issues

 

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Cawlin 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Eager_Igraine posted:
paulg_68 posted:
vn_nnanji posted:
Tax is pre-sale price. Mystery solved.

Which doesn't make any sense. They should charge sales tax based on the price the item actually sells for.

coffee


The item actually sells for $1200. If you want to complain, go to the company that is offering the 'rebate' rather than simply selling the product for $900 it is probably almost worth.


I actually wonder about this. Is there some advantage to selling a product with a rebate vs. selling it at a reduced price? I can understand in those situations with a mail-in rebate - since many people never actually follow through, so there's less "risk" but with those "instant" rebates - why do that instead of just offering it for less money?

 

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Taliesihne 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
I'd imagine it has to do with accounting.

They get to book the sale as a $1200 Sale. The manufacturer eats the loss (and probably writes it off) and they both move more units.

 

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Cawlin 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Taliesihne posted:
I'd imagine it has to do with accounting.

They get to book the sale as a $1200 Sale. The manufacturer eats the loss (and probably writes it off) and they both move more units.



Do you think it has to do with minimum price agreements as a distributor or something... or is it manufacturer based...

I'm trying to figure out who gains by doing this - i.e. why would it matter to book the sale as $1200 vs. $900...

Admittedly, I am well out of my depth with respect to this sort of retail stuff...

 

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Clackdor 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
I think that paul just likes to complain about taxes. It makes sense and it's fair.

 

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Eager_Igraine 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Cawlin posted:
Taliesihne posted:
I'd imagine it has to do with accounting.

They get to book the sale as a $1200 Sale. The manufacturer eats the loss (and probably writes it off) and they both move more units.



Do you think it has to do with minimum price agreements as a distributor or something... or is it manufacturer based...

I'm trying to figure out who gains by doing this - i.e. why would it matter to book the sale as $1200 vs. $900...

Admittedly, I am well out of my depth with respect to this sort of retail stuff...


Perhaps the manufacturer is offering the rebate in an effort to move the product off the shelves for a variety of reasons? They have a need to get last year's models off the retail shelves so the retailers will buy the next year's models, right?

 

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Sin_of_Onin 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Well if you mail in the rebate you wouldn't get the sales tax back. The problem is that essentially Best Buy is doing a service for free by not taking your money in the first place.

 

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ZigmundZag 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
It's probably just for accounting purposes, getting to report your total sales as the larger figure.

 

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Fist_de_Yuma 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
The instance rebates don't make much sense to me. If they would discount instead you can get around the tax. The reason for a rebate is so they don't have to lower the price and then raise it. That tends to lower sales. By using rebates they can never be accused of raising the price. The mail in rebates were smart because so many people never sent them in. Free money. Sadly the public caught on and a mail in rebate does not have the pull the instance ones do.

Me, I would rather they lower the price for a set time and then fill the airwaves with the "deal". Rebates don't make much sense in today's internet market.

 

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Kjarhall 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
paulg_68 posted:
vn_nnanji posted:
Tax is pre-sale price. Mystery solved.

Which doesn't make any sense. They should charge sales tax based on the price the item actually sells for.

coffee


If you'd rather pay the $1200 + tax and wait for a $300 check in the mail from another entity, that's your prerogitive, but it's kinda stupid when you can get it right away.

All they are doing is exchanging cash with you, after the sale, for the ability to redeem the rebate themselves.

Otherwise it's a $1200 sale to their accounting.

 

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Cawlin 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
It still all seems like voodoo math and nonsense to me. I suppose there are reasons for it all but I guess I am just glad I don't work with retail sales stuff like this.

I was expecting to hear that there was some sort of tax advantage for rebates vs. reduced prices - like you can double dip your tax writeoff on rebated monies vs. simply lowered profits by virtue of reduced prices on your goods or something...

 

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Kjarhall 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
One of the biggest reasons for offering rebates is that they increase sales at the same rate as a sale, but redemption of a sale is 100% and rebates are not.

There is a % of people that never claim a rebate.

 

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paulg_68 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Afio posted:
So in my case I would be paying $21.00 more. I am still getting $279.00 off.

Stop being so petty.

You're getting $300 off and then being charged $21 extra by someone else for no good reason.

If your boss gave you a $100 bonus and then I mugged you and took $20 would it be petty for you to be upset about the $20 I took? You are still $80 ahead.

coffee

 

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vn_nnanji 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
vn_nnanji posted:
Tax is pre-sale price. Mystery solved.


It's really not that hard to grasp, nor is there much to say once you accept reality.

A pretty much national reality, I might add. I don't know of any state that gives up tax revenue to sales price. So to review;

vn_nnanji posted:
Tax is pre-sale price. Mystery solved.


 

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paulg_68 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Eager_Igraine posted:
The item actually sells for $1200.

No, it doesn't.

That sort of thinking reminds me of when I was a little kid and my cousin and I each gave each other $100 for Xmas. My aunt was mad because she thought that was way too much for kids to be giving for Xmas. Somehow it escaped her that we actually hadn't given each other anything.

coffee

 

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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Did you do it by exchanging silver spoons? doh!

 

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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
paulg_68 posted:
Eager_Igraine posted:
The item actually sells for $1200.

No, it doesn't.



Yes, it does.


 

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Akza 
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Subject: In California if your buy something with a rebate you pay the full sales tax anyways...
Kjarhall posted:
One of the biggest reasons for offering rebates is that they increase sales at the same rate as a sale, but redemption of a sale is 100% and rebates are not.

There is a % of people that never claim a rebate.


This is the sole reason of rebates.

 

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