General Sales

field_block:node:guide:body

Sales of product are taxable unless an exemption applies.

Examples of product sales include:

• Bait and tackle	• Life vests
• Batteries	• Parking fees
• Beer	• Pet food
• Bug spray	• Pop
• Candy and gum	• Postcards
• Charcoal and lighter fluid	• Souvenirs, except clothing
• Clothesline and pins	• Sunglasses (nonprescription)
• Firewood (recreational use)	• Swimming goggles, nose clips, and ear plugs
• First aid supplies	• Tablecloths
• Food (meals or drinks) prepared or heated by the seller	• Tennis rackets and balls
• Fuels for stoves and lanterns	• Tobacco, except cigarettes
• Golf clubs, balls, gloves, and spikes or cleated shoes	• Towel service
• Jewelry	• Use of coin-operated entertainment and amusement devices
• Latrine chemicals	• Water toys

Equipment Sales

If you sell or lease equipment or other items that you used in your business, the sale may be taxable. For more information, see Isolated and Occasional Sales.

Snack Bars

Any food prepared by the seller or sold with eating utensils provided by the seller is taxable. For example, sales at a snack bar. For more information, see Prepared Food.

Vending Machine Sales

The only taxable food sold through vending machines, snack boxes, or honor boxes is prepared food, soft drinks, candy, and dietary supplements. Previously, all food sold through a vending machine was taxable.

For more information, see Vending Machines and Other Coin-Operated Devices.

Gift Certificates and Card Sales

Gift certificates and gift cards are not taxable when sold. When a gift certificate or gift card is redeemed, charge sales tax on any taxable portion of the purchase. Apply the gift certificate or card as a cash payment.

Sourcing Admissions, Memberships, and Fees

Generally, sales of tickets for admission to taxable events and sales of taxable memberships to clubs are sourced to the location where the event or facility is located.

Sometimes the tickets or memberships allow use at various locations. For example, a membership to a health club that allows customers to use a number of facilities located in or outside of the state. These sales are sourced to the location where the membership is sold, regardless of where it is first used or primarily used.

Discounts and Coupons

Discounts and coupons allow customers to buy prepared food and drinks at a reduced price.

Examples include:

Buy one admission, get one free
50% with the purchase of a second item
Free drink with the purchase of admission

The price you charge tax on depends on if you are reimbursed for the discount or coupon being redeemed

Are you reimbursed by a third party?	Charge sales tax on:
Yes	Total sales price before you subtract the discount
No	Sales price after you subtract the discount amount

Daily Deal Website Vouchers and Coupons

Generally, customers buy discount vouchers and group coupons online and then bring them to the retailer for the discount. The purchase of a discount is not taxable. If the item (or service) is taxable, charge sales tax when the voucher or coupon is redeemed.

Do you know how much the customer paid for the voucher?	Charge sales tax on:
Yes	Amount paid for the discount voucher
No	Face value of the discount voucher

Note: Your records must support the tax calculation.

For more information, see Coupons, Discounts, Rewards, Rebates, and Other Forms of Payment.

Local Sales Tax

Some cities and counties have local sales and use taxes. If you are located in or make sales into an area with a local tax, you may owe local sales and use tax. For more information, see Local Sales and Use Taxes.

To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use our Sales Tax Rate Map or Sales Tax Rate Calculator to help you determine the sales tax rate.

Note: The map and rate calculator do not include special local taxes.

For more information, see:

Guide Menu