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BTLG Table of Contents > Sales and Use Tax Annotations > G > 280.0000 Gifts, Marketing Aids, Premiums and Prizes > Annotation 280.0760

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G

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280.0000 Gifts, Marketing Aids, Premiums and Prizes— Regulation 1670

Annotation 280.0760

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280.0760 Incentive Program. Salesmen and distributors of a corporation are awarded points based on the results they achieve, and they may redeem those points for merchandise. That is, the corporation is transferring merchandise to salesmen or distributors in exchange for services rendered. Accordingly, the transfers are for consideration and constitute sales. Since there is no agreed monetary valuation between the corporation and the salesmen and distributors, it appears that the best method for determining the taxable selling price of the merchandise is to use the amount paid by the corporation for that merchandise. 3/21/57. (Am. 2001–3).