Restaurant and grocery coupons can’t be taxed in Missouri

Fat City reader Larry — a self-proclaimed cheapskate — wrote to say that he had used a coupon for a reduced-price meal at a local restaurant but had been taxed on the full amount. In other words, he had been taxed on the coupon. In Missouri, he said, that isn’t legal. A little research from Pitch investigative reporter David Martin verified this (there’s also this report by KSHB-TV’s Jenn Strathman on the same issue). If you use coupons at a restaurant in Missouri, you should pay sales tax only on the discounted prices. The law reads:

“Notwithstanding any law or rule to the contrary, sales tax shall only apply to the sale price paid by the final purchaser and not to any off-invoice discounts or other pricing discounts or mechanisms negotiated between manufacturers, wholesalers, and retailers.”

KSHB-TV’s Strathman discovered that many businesses were overcharging customers anyway.

(Image via Flickr: Waffle Whiffer)