The sales tax treatment of discounts available through store loyalty cards depends, like the treatment of coupons, on whether the discount offered to the customer reflects a manufacturer’s discount — where the full price before discount is subject to tax — or a store discount, where tax is applied only to the lower, discounted price. In “Tax Department Policy on Manufacturer’s Discounts Received Using Store Loyalty Cards,” TSB-M-11(10)S (N.Y.S. Dep’t of Taxation & Fin., June 29, 2011), the Department sets out the procedure a vendor must follow to disclose the existence of a manufacturer’s discount through a loyalty card, including providing clear notification on coupons, circulars, or advertisements; using distinguishable shelf tags; or giving a receipt, and posting a sign, clearly indicating manufacturer’s discount, and using similar procedures for online sales. These notice provisions are important to follow. If a vendor fails to make adequate disclosure of the manufacturer’s discount, the vendor may only collect tax from the customer on the lower, discounted price, but must remit tax on the full sales price, thereby becoming the payor, not merely the collector, of sales tax on the discounted amount.