Illinois DOR Clarifies Taxability of Coupons, Discounts

The Illinois Department of Revenue (IDOR) July 1 issued information clarifying that in a retail transaction, incentives such as coupons, discounts, or rebates are considered part of the selling price and are subject to sales tax if the retailer receives reimbursement for offering the incentive. However, these incentives are not subject to sales tax if the retailer does not receive reimbursement for the cost of the incentive from any source. [Ill. Dep’t of Revenue, Taxability of Coupons, Discounts, 07/01/24]

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