Tax Change on Half Price Deals
Dear guests and customers: After a meeting of Louisiana Association of Tax Auditors (LATA), Splendor Farms has been advised that the St. Tammany Sheriff's Tax Collector has changed their policy regarding the tax rate on 1/2 price deals from "Social Coupon" sites (e.g., Groupon, LivingSocial, BargainBee, etc.) These deals are now taxed based on the coupon's purchase price rather than face value.
See below for a letter from the St. Tammany Parish Tax Office
explaining the recent tax rate change for 1/2 price deals.
TAX COLLECTOR - PARISH OF ST. TAMMANY
P. O. BOX 1229, SLIDELL, LOUISIANA 70459
Phone (985) 726-7788 • Fax (985) 726-7789
Date: December 20, 2011
To: Customers of Splendor Farms
Subject: Social Coupons
Dear Customer:
Approximately one year ago, Splendor Farms contacted the St. Tammany Parish Tax office to determine the proper manner to tax discounted coupons. As many other states and taxing jurisdictions have taken the position to charge tax on the face value of the coupon, our office informed Splendor Farms to collect sales tax on the face value of the coupon. Upon further consideration of the type and wording that is stated on the coupons issued by Splendor Farms, the St Tammany Parish Tax Collector has taken the position that coupons which are for the exchange of a specific taxable item or taxable service are constituted as a discounted sale. Therefore, the tax should be charged on the purchase price of these types of coupons.
Splendor Farms should be commemorated for taking due diligence in assuring the proper application of the state and local sales and use tax ordinances. It should be comforting to know that you are conducting business with an upstanding business entity.
If you have any questions concerning this matter, please feel free to contact me at (985) 726-7788.
Sincerely,
Susan Whitaker
Auditor Sales and Use Tax Department
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