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BTLG Table of Contents > Sales and Use Tax Annotations > G > 295.0000 Gross Receipts > Annotation 295.0944

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G

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295.0000 Gross Receipts

Annotation 295.0944

(c) Discounts

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295.0944 Employee Discounts. Employees of a corporation that operates a retail store receive a 25 percent discount in the store at the time of sale. The employees then mail the sales receipts to corporate headquarters for an additional discount which represents the difference between the amount paid and the corporation's cost of the merchandise plus a small mark-up. The additional discount is sent to the employees in the form of a check. The amount of the discount is not a rebate or amount based on sales by the employee to third parties. Rather, it is a discount in the sales price of specific property given by the seller to the purchasing employee. The additional discount is not part of taxable gross receipts. If tax reimbursement has been charged on the additional discount, it constitutes excess tax reimbursement. 9/25/95.