Fat City reader Larry -- a self-proclaimed cheapskate -- wrote to say that he had used a coupon for a reduced-price meal at a local restaurant but had been taxed on the full amount. In other words, he had been taxed on the coupon. In Missouri, he said, that isn't legal. A little research from Pitch investigative reporter David Martin verified this (there's also this report by KSHB-TV's Jenn Strathman on the same issue). If you use coupons at a restaurant in Missouri, you should pay sales tax only on the discounted prices. The law reads:
"Notwithstanding any law or rule to the contrary, sales tax shall only apply to the sale price paid by the final purchaser and not to any off-invoice discounts or other pricing discounts or mechanisms negotiated between manufacturers, wholesalers, and retailers."
KSHB-TV's Strathman discovered that many businesses were overcharging customers anyway.
(Image via Flickr: Waffle Whiffer)
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Sounds like grounds for a class-action lawsuit. It's one thing if they're passing along the overcharge to the state, but if they're collecting "taxes" and then keeping the overage, that would certainly qualify as fraud.
Yeah, but people also need to be reminded that they SHOULD leave the gratuity based on the full amount, not on the amount after the coupon. The server still has to do the same amount of work and should get what they would earn without the coupon being used.
Many places aren't taking coupons any more because people are so chintzy about tipping the staff based on the discounted amount.
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