| yes, that's correct. example:
26000 selling price
+2242.50 8.625 tax
28242.50 subtotal
-2000
26242.50 total
Taxes are charged on rebates, just as if you went to best buy and bought a tv for 1000 with a 100 mail in rebate. you pay tax on the 1000, and then get the rebate of 100.
This is the proper way to do it according to tax law. |