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Please be aware: Costco charges taxes full price before rebate

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I am not sure if it is already discussed topic. But yesterday only i realized that Costco charges taxes before the discount.

if you are planning to buy a tv in sale for 1000 dollars but Costco will charge the sales tax for 1800 dollars before the rebate of 800 dollars

http://www.costco.com/warehouse-c...ffers.html

http://www.costco.com/
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#2
That is how rebates work. They aren't the same as coupons. If you have a mail in rebate, you pay full price + tax and then get the rebate amount later. Costco is just consolidating the process by offering an instant rebate, but tax is still collected on the full amount.
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#3
Quote from voovle
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I am not sure if it is already discussed topic. But yesterday only i realized that Costco charges taxes before the discount.

if you are planning to buy a tv in sale for 1000 dollars but Costco will charge the sales tax for 1800 dollars before the rebate of 800 dollars

http://www.costco.com/warehouse-c...ffers.html

http://www.costco.com/
Rebates are not the same as a sale price. A rebate assumes you pay the full amount up front and hence are charged tax on that amount. You then get a refund of the rebate amount, even if it is instant.
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#4
Quote from voovle
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I am not sure if it is already discussed topic.
No, it hasn't been discussed yet because everyone else knows how rebates work.
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#5
Quote from voovle
:
I am not sure if it is already discussed topic. But yesterday only i realized that Costco charges taxes before the discount.

if you are planning to buy a tv in sale for 1000 dollars but Costco will charge the sales tax for 1800 dollars before the rebate of 800 dollars

http://www.costco.com/warehouse-c...ffers.html

http://www.costco.com/
Pretty well known and it's been brought up a lot before, Costco claims it's a state requirement. There was a class action suit brought in California last year on the practice but since i don't live in Cali, I don't know whatever came of it. But in Illinois, the sales tax code is supposedly written that way because in Illinois, they've never met a tax that didn't like.
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Quote from practicalme
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Pretty well known and it's been brought up a lot before, Costco claims it's a state requirement. There was a class action suit brought in California last year on the practice but since i don't live in Cali, I don't know whatever came of it. But in Illinois, the sales tax code is supposedly written that way because in Illinois, they've never met a tax that didn't like.
Please remit payment for your "Bashing of Illinois" tax. Thanks Cool
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Quote from rayzac
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Please remit payment for your "Bashing of Illinois" tax. Thanks Cool
LOL. It wouldn't shock me in the least.
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#8
I consider an instant rebate to be a sales tactic, not a rebate or coupon, and should not be taxed.
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Quote from Searching4TheBest
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That is how rebates work. They aren't the same as coupons. If you have a mail in rebate, you pay full price + tax and then get the rebate amount later. Costco is just consolidating the process by offering an instant rebate, but tax is still collected on the full amount.
i am not talking about mail in rebates. i am talking about manufacture disconuts that cpstco put in their warehouse coupons.

for example they say 5 dollar light bulbs have 4 dollar manufacture discount. so you should pay 1 dollar + tax (0.7 cents) but costco charges tax for 5 dollrs ... so you have to pay 1.35 cents
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#10
Right at the top of the Terms and Conditions page it states:

Quote :
When redeemed, state and local laws may require sales tax to be charged on the pre-discounted price.
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#11
What rock have you been hiding under?
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Quote from voovle
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i am not talking about mail in rebates. i am talking about manufacture disconuts that cpstco put in their warehouse coupons.

for example they say 5 dollar light bulbs have 4 dollar manufacture discount. so you should pay 1 dollar + tax (0.7 cents) but costco charges tax for 5 dollrs ... so you have to pay 1.35 cents
In fact, you are talking about rebates. Manufacturer discounts are applied as Instant Rebates. If you read the pricing signs, it says right on it that it's Mfr's Instant Rebate. It also sometimes says "Sales Tax on the pre-rebate price" right on the sign.

Check out this photo for proof: Costco Instant Rebate Photos [couponingtobedebtfree.com]

*As another poster quoted, this of course can vary based on local and state regulations.
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