In SD. Purchase heating fuel. Get 5% discount. Must I pay sales tax on the full amt. or discounted amt.?

Question

Heating Oil purchase of $300.00. 5% discount for cash = $15.00. Must I pay sales tax on the $300.00 or the discounted price of $285.00?

Answer 1

Discounted.

Call the company you are buying from to be sure, as they are the ones that have to pay, but sales tax is on the actual amount paid.

Answer 2

You only pay sales tax on the amount of money you spend. You go to a Walmart and they have shirts on sale reg price is $20.00 but they are 1/2 price for only $10.00, you only pay sales tax on the $10.00. If your scenario were true then it would behoove people to say I want to sell it for $400.00 but you can have it for $285.00 and charge you tax on $400.00 and keep the profit.

Answer 3

You only pay tax on the actual amount paid; 285.00

Answer 4

Tax is usually charged on the amount you paid, after all discounts.