Question by : In Colorado, do retailers charge tax on coupons when you use SNAP benefits?
It is my understanding it varies state to state, but I am wondering if someone uses SNAP to purchase groceries, and use coupons to save money on the groceries…do they have to pay tax on the coupons?
Answer by Corvato
SNAP is usually called food stamps or EBT
you don’t get taxes on coupons… but if you are buying products that have a sales tax, you will be charged sales tax on the product usually before the coupon
so if you have 8% sales tax, and buy a $ 1 product, you get charged $ 1.08
if you use a 50% off coupon, you will pay 1.08, minus 50 cents = 58 cents
What do you think? Answer below!