Yes, you still have to pay tax on your reward. The reward is applied as a manufacturer sponsored coupon. A manufacturer discount is any physical coupon (or promotion) applied to a sale in which Hollywood Feed will be receiving reimbursement for the discount/coupon amount from the manufacturer or vendor. If Hollywood Feed is receiving revenue from any source for the sale of a product, then sales tax must be collected. To learn more about how sales tax is determined if there is a discount/coupon/promotion, click here.