Should I have to pay sales tax on a manufacturer's rebate? How about shipping and handling?

Q: I feel that I was cheated by the state of Florida. I agreed to pay $19,000 for a Mazda. When the dealer presented the invoice, the sales tax was calculated on $22,000 and then a "rebate" of $3,000 was deducted from the price. I protested, but the dealer insisted it was required by the state. A cash rebate was not discussed or offered. I felt it was a price adjustment or discount. The state is collecting tax on fictitious prices. I don't know if fraud is the correct term, but it sure is unfair. What do you think?

A: I see your point, but there wasn't any fraud. Florida sales tax is based on the amount received by the seller. In this case, the dealer received $19,000 from you and $3,000 from the manufacturer for a total of $22,000. "The tax is due on that amount because that's what the dealer received," said Mark Zych, director of technical assistance for the Florida Department of Revenue.

The same principle applies at the grocery store. If you use a manufacturer's coupon, you'll pay tax on the precoupon price because the retailer collects from you and the manufacturer. If you use the store's coupon, the tax is on the after-coupon price.

Q: I recently purchased an item online from a national retail chain. While I realize that I must pay sales tax on the item, I questioned the fact that I should pay sales tax on the shipping and handling as well. After all, I don't pay sales tax on stamps, or labor. What gives?

A: What's taxable and what isn't is a matter of state law. Under Florida law, the sales tax applies to shipping and handling charges. Here's a reference.