3 ms·
Advertisements don't stop at city limits and zip codes. If I see a promotion in one side of town, the tax could be on the other side.
by legitster 3y ago
Advertisements don't stop at city limits and zip codes. If I see a promotion in one side of town, the tax could be on the other side.
- PeterisP 3y agoThat's not a problem anywhere else - if you have two (or two hundred) locations with different tax rates, just calculate whatever is the highest total, and advertise that - you're definitely allowed to sell stuff for cheaper than you advertised, so if one location has a 2% lower tax rate, you can sell it cheaper there; or you can charge different pre-tax prices so that the total is the same, if that's more profitable for you; I've seen both options used when advertising prices in EU-wide international campaigns despite different VAT rates across EU countries.
- immibis 3y agoSo let the billboard say $5+tax. The price tag in the store should still say $5.99 - the state border doesn't go down the middle of the checkout line. If it's online and you know where I live, it should say $5.99 too.
- pavon 3y ago> So let the billboard say $5+tax This is what is done now, and what the FTC/FCC are trying to make illegal. The sticking point is that these specific industries have gotten very creative about what constitutes a tax or government fee, so it isn't as simple for consumers as knowing you have to tack on sales tax.