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Topic:
In California if your buy something with a rebate you pay the full sales tax anyways...
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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Cawlin posted:
Taliesihne posted:
I'd imagine it has to do with accounting.
They get to book the sale as a $1200 Sale. The manufacturer eats the loss (and probably writes it off) and they both move more units.
Do you think it has to do with minimum price agreements as a distributor or something... or is it manufacturer based...
I'm trying to figure out who gains by doing this - i.e. why would it matter to book the sale as $1200 vs. $900...
Admittedly, I am well out of my depth with respect to this sort of retail stuff...
Perhaps the manufacturer is offering the rebate in an effort to move the product off the shelves for a variety of reasons? They have a need to get last year's models off the retail shelves so the retailers will buy the next year's models, right?
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Sin_of_Onin
Posts: 1,307
Registered: 2005-6-29 08:21:12
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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Well if you mail in the rebate you wouldn't get the sales tax back. The problem is that essentially Best Buy is doing a service for free by not taking your money in the first place.
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ZigmundZag
Title: Grammar Nazi
Posts: 1,211
Registered: 2002-3-25 23:03:00
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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It's probably just for accounting purposes, getting to report your total sales as the larger figure.
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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The instance rebates don't make much sense to me. If they would discount instead you can get around the tax. The reason for a rebate is so they don't have to lower the price and then raise it. That tends to lower sales. By using rebates they can never be accused of raising the price. The mail in rebates were smart because so many people never sent them in. Free money. Sadly the public caught on and a mail in rebate does not have the pull the instance ones do.
Me, I would rather they lower the price for a set time and then fill the airwaves with the "deal". Rebates don't make much sense in today's internet market.
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Kjarhall
Title: The Pungent One
Posts: 915
Registered: 2002-3-1 15:47:21
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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paulg_68 posted:
vn_nnanji posted:
Tax is pre-sale price. Mystery solved.
Which doesn't make any sense. They should charge sales tax based on the price the item actually sells for.
If you'd rather pay the $1200 + tax and wait for a $300 check in the mail from another entity, that's your prerogitive, but it's kinda stupid when you can get it right away.
All they are doing is exchanging cash with you, after the sale, for the ability to redeem the rebate themselves.
Otherwise it's a $1200 sale to their accounting.
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Cawlin
Posts: 1,759
Registered: 2005-2-22 07:58:42
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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It still all seems like voodoo math and nonsense to me. I suppose there are reasons for it all but I guess I am just glad I don't work with retail sales stuff like this.
I was expecting to hear that there was some sort of tax advantage for rebates vs. reduced prices - like you can double dip your tax writeoff on rebated monies vs. simply lowered profits by virtue of reduced prices on your goods or something...
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Kjarhall
Title: The Pungent One
Posts: 915
Registered: 2002-3-1 15:47:21
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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One of the biggest reasons for offering rebates is that they increase sales at the same rate as a sale, but redemption of a sale is 100% and rebates are not.
There is a % of people that never claim a rebate.
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paulg_68
Posts: 2,469
Registered: 2009-7-27 18:45:54
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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Afio posted:
So in my case I would be paying $21.00 more. I am still getting $279.00 off.
Stop being so petty.
You're getting $300 off and then being charged $21 extra by someone else for no good reason.
If your boss gave you a $100 bonus and then I mugged you and took $20 would it be petty for you to be upset about the $20 I took? You are still $80 ahead.
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vn_nnanji
Title: Outpost Music Expert
Posts: 1,964
Registered: 2001-6-30 17:22:56
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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vn_nnanji posted:
Tax is pre-sale price. Mystery solved.
It's really not that hard to grasp, nor is there much to say once you accept reality.
A pretty much national reality, I might add. I don't know of any state that gives up tax revenue to sales price. So to review;
vn_nnanji posted:
Tax is pre-sale price. Mystery solved.
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paulg_68
Posts: 2,469
Registered: 2009-7-27 18:45:54
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Date Posted:
1/1/00 12:00am
Subject:
In California if your buy something with a rebate you pay the full sales tax anyways...
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Eager_Igraine posted:
The item actually sells for $1200.
No, it doesn't.
That sort of thinking reminds me of when I was a little kid and my cousin and I each gave each other $100 for Xmas. My aunt was mad because she thought that was way too much for kids to be giving for Xmas. Somehow it escaped her that we actually hadn't given each other anything.
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