Is it legal to charge sales tax on the original amount of an item that you purchase at a discount?

Question

In other words... if I buy a product from a multi level marketing that I sell for they charge me tax on $270 even though they discount it for my purchase at $170.

Answer 1

Sales tax is typically assessed on the selling price. The discount comes off after the sales tax is added on.

But if you are a reseller, there should NOT be any sales tax charged to you, assuming that you have a sales tax ID for your state. You, however, must collect tax from your customer and remit it to the state.