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Chris W. Rea
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Sales taxes on Groupons or LivingSocial coupons?

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user14258
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Say I buy a $10 Groupon that lets me buy $20 worth of food at a restaurant. I go to the restaurant and order items that add up precisely to $20 (based on the menu price). If the state sales tax is 6% (specifically in Michigan if that matters), then how much in sales taxes should I pay (if any)?

Assume it's takeout and I choose to pay ZERO tip.

What should I pay? $0? $0.60? $1.20 (6% on the full $20 value)?

It's quite possible that there simply isn't any legal clarity on this issue, as I've been charged varying amounts ($0.

In the above scenario, I am sometimes charged $0 and sometimes $1.20 being. My question here is what LEGALLY should be the two most common possibilities inproper thing for the above scenariorestaurant to do (and not what they usually or actually do).

Say I buy a $10 Groupon that lets me buy $20 worth of food at a restaurant. I go to the restaurant and order items that add up precisely to $20 (based on the menu price). If the state sales tax is 6% (specifically in Michigan if that matters), then how much in sales taxes should I pay (if any)?

$0? $0.60? $1.20 (6% on the full $20 value)?

It's quite possible that there simply isn't any legal clarity on this issue, as I've been charged varying amounts ($0 and $1.20 being the two most common possibilities in the above scenario).

Say I buy a $10 Groupon that lets me buy $20 worth of food at a restaurant. I go to the restaurant and order items that add up precisely to $20 (based on the menu price). If the state sales tax is 6% (specifically in Michigan if that matters), then how much in sales taxes should I pay (if any)?

Assume it's takeout and I choose to pay ZERO tip.

What should I pay? $0? $0.60? $1.20 (6% on the full $20 value)?

It's quite possible that there simply isn't any legal clarity on this issue, as I've been charged varying amounts.

In the above scenario, I am sometimes charged $0 and sometimes $1.20. My question here is what LEGALLY should be the proper thing for the restaurant to do (and not what they usually or actually do).

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mhoran_psprep
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