Wednesday, March 5, 2008

Committee Votes to Repeal Tax on Coupon Items

It may soon be easier for Oklahoma restaurants to hand
out free-food coupons thanks to legislation eliminating the sales tax on the promotions.

House Bill 3149, by state Rep. David Derby, eliminates sales tax on gift cards or coupons issued by restaurants to promote food or beverage items if the item's retail price does not exceed $10.

Derby said the legislation was filed after the owner of
the Owasso Chick-fil-A, Mark Snyder, came to him to help.

"Mark was trying to promote his store by providing
free sample coupons, which is already at an out-of-
pocket expense. Then on top of that, he has to pay
sales tax on items he isn't actually selling," said
Derby, R-Owasso. "This bill will allow restaurants
to continue giving away free-food coupons to attract
consumers and promote the business."

House Bill 3149 has passed out of the House
Appropriations and Budget Committee and advances to
the full House for a vote.

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