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Credit cards and points and sales tax (michigan)

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jtjumper

Junior Member
(Michigan)
If I use points I earned on my credit card to pay for part of an item that I bought online, do I pay sales tax on the whole price or just the part I paid in cash?
I already know Michigan does not count credit points as income, but rather as rebates. However, I have no idea what this means for sales tax.
 


justalayman

Senior Member
You pay sales tax on whatever price the seller sells the item for. Unless it is arranged somehow that the seller discounts the price due to the points, it does not alter the actual sales price and that is what taxes must be paid on. The only issue here is the fact the credit card company would be tossing in some of the money but you are still the purchaser.
 

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