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AFM: Frugal Fun Fact Friday 10/21/11

AFM: Frugal Fun Fact Friday   10-21-11 Did you know... ...stores MAKE MONEY when you use a manufactures coupon.  If you read the fine print on a manufacture's coupon, you'll see that a store will not only be reimbursed the cost of the coupon, but will usually get an additional 8 cents per coupon for shipping and handling.  (The store pays for the "doubled" portion of a coupon, should they choose to double.)  So, go out and make your store some money, while you SAVE money in the process!  ;o) P.S.  This only works when coupons are used ethically .   Keep on saving!  :o) --Barbara

Calculating Sales Tax with Coupons

When you use coupons, it's important to understand how sales tax works with manufacture and store coupons. Consider the following points: 1)  A store is reimbursed by the manufacture for the value of a coupon used. Thus, the store still generates revenue from the couponed item. Therefore, sales tax IS applied to the amount of the coupon.   2)  When you use a store coupon, OR when a store doubles the value of a manufacture's coupon, the store is NOT reimbursed for that amount. Therefore, the amount for which the store doubles a coupon or the amount of a store coupon is NOT subject to sales tax. Make sense? Let's set up a scenario, with easy round numbers. Let's say you are able to take advantage of a 10 for $10 sale at Publix. Each item is thus priced at $1.00. Let's further say you are lucky enough to have matching manufacture coupons worth 50 cents for each item. That's $5.00 in manufacture coupons. If your Publix DOUBLES those coupon...