Revenue Department Monitoring Group Savings Websites

By: Lily Wu - Email
By: Lily Wu - Email

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Monday, February 28, 2011

The Kansas Department of Revenue is monitoring the amount of taxes being collected from popular group savings websites.

"It's something a lot of states are looking at. This is a case where technology is outpacing the laws that they've written," said Jeannine Koranda, Kansas Department of Revenue spokeswoman.

Group savings sites like Groupon offer a deal-of-the-day. The site takes a portion of each Groupon they sell and do not charge the business up front fees.

"You get the added revenue of people coming in and knowing about your business. People that may have not known you were there," said Kimberly Villar, Ben Villar Mexican Restaurant co-owner. "Also, you get the money back. A lot of places you have to put the money out to get advertising."

The Kansas Department of Revenue wants to make sure business owners know that money given back from these coupon websites is taxable.

"What ever revenue the merchant receives from Groupon for participating in the program, they also have to apply sales tax to that," said Koranda.

Although Koranda said this is not a pressing concern for the Department of Revenue, she said, "It's something the Department is reviewing. Make sure that the appropriate amount of sales tax is collected."

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