I have several discount codes that I offer my customers. For example $2.00 off any gallon of milk. Customer purchases 1 gallon of milk and some other items some of them are taxable and some not. When customer enters discount code at the checkout it takes out $2 plus tax. Why? I only give $2.00 not 2 plus tax. Am I doing something wrong?

Need some help understanding the logic behind it.

I've seen a lot of people looking at the post but no posts. Maybe can answer the question?

If I am thinking of your question correctly the amount you owe for tax changes due to the total amount the customer is paying because of the discount you give.

For Example: lets say your sales tax rate is 5%

You have a customer order that equals $100 so the tax would be $5 and the total amount paid by the customers is $105.

If you offer the $2 discount then the amount your customer order is now $98 so the tax would be $4.90 and the total amount paid by the customer now would be $102.90

Not sure if that is what you were talking about.

Here is what I'm taking about:

Customer ordered:

1 gallon milk-$4.99 nontaxable
bottle of vodka-$14.99 taxable

our tax rate is 8.25%

subtotal=19.98
tax=1.24
total=21.22

then we give customer a discount for milk for $2.00

21.22-2=19.22

MC treats discount count as taxable and instead it does 21.22-2.17=19.05

I hope it was clear this time.

Makes sense now, I have not been able to find a setting which would allow you to choose what the discount was for taxable or non-taxable item.

All our items are taxable goods so I never noticed that before and it would be a real issue if we started offering services or other non-taxable goods.

I think would be the only ones who could properly answer this question.

Thank you. I'll be waiting for to answer this question.

You might want to open a ticket to support. Waiting for an anwer on the forums might take some time, if ever.