Coupons and sales tax: Know the rules  Share with others:  Print
Email Read Later  Pennsylvania's tax code allows retailers to
deduct coupons from the price of taxable goods and then apply
sales tax only to the lower, adjusted price. That results in
customers paying less sales tax.  The tax break applies to
coupons for low-cost items in the grocery store as well as to
coupons used on more expensive goods, such as a toaster oven,
refrigerator or two-for-one restaurant deal -- as long as the
coupon is for a specific item.  Coupons offering money or a
percentage off an entire purchase don't reduce the tax bite
because they aren't for a particular item.  Mail-in rebates
don't count, either, because they don't reduce the purchase
price of an item at the time of the sale.  People who believe
they have been overcharged on sales tax should return to the
store and ask for a refund, said Stephanie Weyant, spokeswoman
for the Pennsylvania Department of Revenue.  Alternatively,
Pennsylvania residents can request a refund