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BTLG Table of Contents > Sales and Use Tax Annotations > G > 280.0000 Gifts, Marketing Aids, Premiums and Prizes > Annotation 280.0373

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G

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280.0000 Gifts, Marketing Aids, Premiums and Prizes— Regulation 1670

Annotation 280.0373

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280.0373 Discount of Catalog Price Against First Purchase. A retailer sells catalogs to customers and agrees to deduct the amount paid for the catalogs against the customer's first purchase.

The transfer of a catalog for a consideration is a sale of tangible personal property. The charge for the catalog is included in the retailer's gross receipts at the time of the transfer of the catalogs. Later, when the customer purchases merchandise and is given a discount measured by the price he/she paid for the catalog, that discount will be considered to be an adjustment to the price of the merchandise and may be excluded from the sales price of the merchandise. If the two items are sold at the same time, the merchandise and the catalog, the net result is the same as stated above. 4/21/82.