Question

if something is 148 dollars and i have a coupon for 30 dollars off 100 and i live in ohio how much is my total going to be with tax? @whpalmer4 @wyattp17 @Well,Whatever @wakoff @qam2k @qballdineroo12 @satellite73 @SWAG @wyattp17 @amistre64

Answer 1

do you know the tax rate in Ohio?

Answer 2

I would say first you find the tax of the object you are going to buy from the state you are buying it from then you subtract 30 dollars from it and I would say that that is the answer

Answer 3

but first subtract the 30 dollars, then compute the tax on this new price

Answer 4

the rate is i think 5.5%

Answer 5

I would say that you do:
148*5.5% = a
a - 30 = answer

Answer 6

Usually they deduct the 30 dollars from the original price, not the taxed price... and the method of computing the taxed price is incorrect ^

Answer 7

how much would my total be with tax

Answer 8

First you compute the price minus the rebate: 148 - 30 = 118

Answer 9

Now, you can approach calculating the price with tax in "2 ways" (although it is essentially the same thing:
1) 118 * 5.5% will give you the price of JUST the tax amount. You have to then add on this amount to the 118 to get how much the item is WITH the tax

Answer 10

can you do that?

Answer 11

Yeah I said it wrong

Answer 12

another way to find the total price with the tax is just to take the price * (100%+tax rate), so 118*(100%+5.5%), which saves you from doing an extra step

Answer 13

124.49 is it right?

Answer 14

yes that is correct

Answer 15

ok thanks

Answer 16

The question of whether the coupon discount is applied before or after tax is computed is a subtle one. In Ohio, if the discount is coming via a manufacturer's rebate (manufacturer pays money to the store to allow the store to offer you the lower price), you pay tax on the full price. If the store is cutting the price (discount is coming out of their pocket, in other words), then you pay tax only on the net sales price.

Answer 17

@whpalmer4 Oh that is interesting to know. I wasn't sure if different areas had different laws, I just knew from my experience.

Answer 18

Seems reasonable to assume that the laws vary from place to place, as they are state laws, not federal. When refreshing my memory on this topic, I did happen across a post which specifically referred to Ohio law being this way (and as much as I would prefer to pay the tax on the net sales price, it does seem like a rational approach).

Answer 19

Yeah for sure you'd want to pay tax on the net sales price instead :) Yeah sorry I'm not from the U.S. so I didn't realize that they have different state laws

Answer 20

@wyattp17 @whpalmer4 @Well,Whatever @HELPME5846 @qam2k @e.cociuba @Ell @espresso @aaronq @andriod09 what if tax is 7.75 how much would my total be if the item is 146 dollars and i have a 30 dollar coupon ? how much would the total be with tax

Answer 21

the tax amount will be 0.0775 * the amount on which you pay tax.

Answer 22

we can't definitively say from the information given whether you compute the tax on the original price of the item, or the price after the coupon is applied.

Answer 23

u use the coupon before tax

Answer 24

@whpalmer4

Answer 25

okay, if you say so. then compute the amount after the coupon, times the tax rate.

Answer 26

@e.cociuba @espresso @RolyPoly @damien @GodBlessYou @gingersbite @Jhannybean @kyrsten17