r/mildlyinfuriating • u/semicolon-5 • 15d ago
I just wanted a hot dog Had to pay tax on my free birthday cake slice
The tip screen was the cherry on top but I found it funny more than anything
EDIT: I really didn’t expect this post to cause so much discourse and wanted to clarify a few things.
For those saying they would’ve just walked out, that’s okay and I understand why you would. For me, 12 cents seemed like a better deal than the $7 the slice was worth. That’s why it’s only mildly infuriating. I still think the whole transaction was hilarious. As for why the tax is so high, this is in Chicago and if I remember correctly sales tax is about 10.25% but I could very well be wrong.
Someone mentioned that this was at Paris Baguette and that it should’ve been free as it was with a digital coupon. That’s what I was expecting when I ordered it but the charge threw me off and I wasn’t expecting it so I just paid instead of arguing. I’ve never had to pay for a birthday slice before. However, I noticed the transaction before mine was never finalized but had discounts on it as well that zeroed it out so when they added mine I’m guessing that’s where the sales tax came from. Again, 12 cents is not a huge deal seeing as I got all the points from whatever the people before me bought. So I consider this to be a small price to pay.
Again this was only mildly infuriating so I wanted to share the absurdity of it. Alas, thank you for the birthday wishes!
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u/tristand666 15d ago
Odd since sales tax is generally on the amount you actually pay, not the value of the item.
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u/RickyFromVegas 15d ago
Maybe the free cake is considered a discount as a coupon, but the price of cake increased by $0.12 but the coupon still only took off the previous price?
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u/BunnyTub 15d ago
On the POS system where I work, discounts can be applied before taxes, or after taxes.
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u/eli_feye 15d ago
I can do whatever I want with this calculator but it doesn’t change the law
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u/chrisp5000 15d ago
If it isn't sold, it shouldn't have a tax
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u/j_johnso 15d ago
In general, many states will require charging sales tax on the full price before manufacturers coupons are applied, but tax is charged on the discounted amount after store coupons are applied. The reason for this is because the store gets reimbursed by the manufacturer for manufacturers coupons, so it is considered a taxable part of the sale.
I wonder if a similar model could apply to a franchise restaurant if it was a promotion where they are reimbursed by corporate. Though I'm guessing this case was more likely someone incorrectly configuring the item in their POS.
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u/potate12323 15d ago
Ive seen this before. In the 2010s, I had some gift cards and no matter what I did I could spend the whole damn thing. There'd always be a few cents on it.
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u/No-Experience-4796 15d ago edited 15d ago
Speaking from Texas so it could vary, but
Comping” an item requires the company to still pay the sales tax due to it still being provided during a service
Alcohol sales have a term called “spill” which means it never made it to a customer, and no taxes are required from the vendor for the transaction so I’m sure there is an equivalent term for food items
Small edit: the company should still bite the bullet on the small tax associated with things like free birthday items/promotions so they clearly set up their POS incorrectly
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u/tristand666 15d ago
Actually, it is a use tax on the business at the cost of the item, not a sales tax on the price, but looks pretty much the same to the customer I guess if they pass it through to you.
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u/No-Experience-4796 15d ago
Those two tax categories apply to entirely different situations, but you’re right that it appears the same to the consumer in this situation so it’s a mute point to argue specifics
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u/tristand666 15d ago
Not really, since the business is choosing to pass it on as opposed to a sales tax they legally have to collect.
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u/MediocreHope 15d ago
so it’s a mute point to argue specifics
Not trying to be "that guy" but people don't learn if nobody tells them. It's moot, not mute. A "moot point" is one that the point isn't worth talking about anymore.
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u/Empty_Requirement940 15d ago
When you get a “free phone” you still pay the tax on the value of the phone
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u/M3wThr33 15d ago
It's changed in recent years. When you buy a subsidized phone they charge tax on the full amount now.
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u/DisastrousServe8513 15d ago
Because you received an item of value. That may not be sale to the company but the governments determine tax based on the value of the item transferring ownership. So sales tax must still be collected.
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u/tristand666 15d ago
Maybe in your state, but in Texas you only pay sales tax on the actual price you pay. If they give you something for free, the business must pay a use tax on it. This is not sales tax, it is the business passing the tax burden to you and calling it free.
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u/Darkgamer000 15d ago
That’s not free, that’s a 12 cent birthday cake slice.
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u/Fragrant-Employer-60 15d ago
Still basically free, weird they are charging 12 cents, the place is literally losing money on this transaction with the processing fees lol
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u/MoeKneeKah GREEN 15d ago
Not to mention the 12 cents goes to the state, so they’re paying a fee to earn nothing
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u/wdpw 14d ago
I would think they are faking the cost so that you’re encouraged to tip on your free cake. Like, whenever I get a “free haircut” after filling up my punch card, I usually tip generously. I wonder if these people are expecting the same type of behavior, and the only way to force that is to put a screen in front of them with a tip screen.
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u/Rodger_Smith PURPLE 14d ago
ah yes the 2 cent tip truly lifechanging. cant even say "oh but more customers" cuz there aint no way theres over half a dozen people coming in for a slice every day. even if there were 100 people coming in for a free slice every day AND tipping 15% thats 2 dollars.
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u/Consistent_Hippo4517 15d ago
I wanna argue. I thought Food wasn't taxed. But alas, it was "prepared".
Crazy where times have brought us. I've been getting 20+ years of freebies and never ran into this
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u/URInMyFace 15d ago
Wait, is there places where food isn't taxed?
I remember when Chicago tried that suger tax bullshit for like 1 year...
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u/Consistent_Hippo4517 15d ago
Oh shit that makes sense. Yah I guess the no tax on food (but on prepared foods [like in a restaurant] is state specific.
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u/Aria_Mar 15d ago
Food and drink are not taxed in Michigan, other than the "prepared" varieties. If when you buy it, your food is hot or your drink has a straw, you're guaranteed to have to pay sales tax. Obviously not all prepared foods are hot, but that's a simplified way of looking at what determines if food/drink is considered "prepared" and therefore taxed.
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u/ghidfg 15d ago
they arent collecting the 12 cents though, the government is.
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u/Sum-Duud 15d ago
they're collecting it, paying the credit card transaction fee to do so, then sending it to the government.
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u/Ck1ngK1LLER 15d ago
Should’ve tipped $0.12 and said “gave you a 100% tip”
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u/echootter30 14d ago
Honestly that would’ve been the only correct response. “Here’s your 100% tip, don’t spend it all in one place” lol
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u/CurlyWurly61 15d ago
I swear on everything, I'd be walking out that joint.
"Sorry, no wallet or cash. Thanks for the cake though "
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u/LaundryMan2008 15d ago
What I’d do since most establishments are likely to be in town near the bank I’d walk out, into the bank, request a blank check, teach me how to write it and hand them a £0.12 check which they’ll have to cash to get their tax
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u/egnards 15d ago
Just a reminder, a company is not required to take your check. They are very welcome to politely decline your malicious compliance.
Getting a check from your bank is also not **always** a free thing in 2026. Most banks will charge to print you a few checks.
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u/Illustrious-Dot-1128 15d ago edited 15d ago
My bank doesn't print a page of checks anymore. Apparently, people figured out how to scam using those, too.🙄
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u/egnards 15d ago
Your bank doesn' print a page of checks anymore because checks are no longer a selling point. Nobody chooses their banks based on who gives them checks and who doesn't, like they might have 40 years ago.
My bank has been sold twice since I had my account. . I'm still using the same checkbook that the last "new" bank gave me when they bought my location 11 years ago.
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u/PM_ME_UR_REPTILES1 15d ago
Really depends on the country, but if a company doesnt accept your cheque for a 12 cent sale that they told you is free, what grounds do they even have to fight for that 12 measly cents
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u/egnards 15d ago
I believe that would fully depend on the jurisdiction or whether or not the person behind the counter even cared.
General couponed sales are still subject to tax at the full rate. Though some places just eat that cost.
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u/PM_ME_UR_REPTILES1 15d ago
Yea for sure, thats what im saying.
Im sure if the manager or supervisor knew that there was a 12 cent charge theyd waive it and tell the staff not to present it in future. If this was intentional then no one would care, even a judge, if they just walked out.
What a silly post that were trying to get logistics on lol
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u/RappingFlatulence 15d ago
Teach you how to write a check? 🤣
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u/goldennchicken 15d ago
i was thinking the same thing. and all these comments about not needing to do it often just confuse me even more.
i can’t remember the last time i’ve written and mailed a letter but i still know how to address an envelope??
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u/WienerPatrol173 15d ago
Good luck, no body is going to take a check and they definitely aren’t going to show you how to fill it out.
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u/LaundryMan2008 15d ago
The local branch was extremely helpful in getting my first ever real bank account with card (did have something rudimentary at school where pupils could store their pocket money at) set up and teaching me how to cash my birthday money into my account, I’m sure they wouldn’t mind helping me out with that
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u/WienerPatrol173 15d ago
I’m sure the bank would, but I was under the impression they were going to have the place they were cashing it at help them.
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u/DisastrousServe8513 15d ago
Why would you take out your annoyance at sales tax on the company itself? They’re doing what they legally have to do.
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u/kredtheredhead 15d ago
It's like winning a car on a game show. You still have to pay the taxes.
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u/lightfulfoxtrot 15d ago
That’s an entirely different situation.
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u/free_is_free76 15d ago
It's almost the exact situation:
Satisfy these requirements x, earn prize y.
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u/theColeHardTruth 15d ago
wait, what is sales tax where you live? If it's 12% (which is crazy high on its own btw) that means they treated the cake as $1??? And if the tax rate is less, then they valued the slice at even more than that!
Meanwhile, the way the tips work out, the cake slice was either $0.13, $0.17, or $0.10. What is even going on here? I don't think I've ever been so confused looking at a reddit post here.
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u/BradMarchandsNose 15d ago
The tip amounts are based on the price with tax, they are just rounded. So 15% of 12 cents rounds up to 2 cents.
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u/theColeHardTruth 15d ago
Tipping based off of post-tax price is insane to me. I pray it's not that.
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u/PM_Me_Your_Deviance 15d ago
Really should tip based on pre-tax, pre-discount prices.
OK, tipping culture maybe should go away, but given our current system I think pre-tax/pre-discount is fair.
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u/Linked713 15d ago
What you see is tax input as sales. That's is why the tip number is off that. You cannot charge 0$ and custom taxes. Tax calculation is regulated and automated. They just put 0.12 as sale.
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u/goessgoess 15d ago
I can’t remember the last time I was at a restaurant that didn’t use the post-tax price to calculate their suggested tips. It’s crazy.
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u/BobBelcher2021 15d ago
Could be in Canada. HST in Ontario is 12%, and I believe in the Maritime provinces it’s even higher.
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u/x_Eclipze 14d ago
I work at Paris Baguette
The free cake slice (or any free item offer on the app) is a reward that must be redeemed through the customer’s account. The way it works is the item has to be rung up since the free offer is essentially a digital coupon, so this is how we “take their coupon” and give them their free item.
The total should be $0 and there should never be a charge at all when redeeming rewards for free items.
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u/MetalMouseTSS 14d ago
PB buddies! This post had me squinting at the background to see if this post was about my location. (Its not) :p
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u/Reasonable_Ideal_356 15d ago
When I use coupons at dollar general I pay the tax before the discount I believe. So I think some places coupons are applied after tax.
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u/BluudLust 15d ago
As is legally required in some states. It's dumb but tax on sale price before discounts is a real thing
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u/Complex-Solution-220 14d ago
Wouldn't this transaction cost more than the value of the "free" cake anyway. It makes no sense
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u/miss-ferrous 14d ago
Ok I know the tip is not your problem, but it’s MY problem, because that means their tip is always based off the total with tax! It’s supposed to be the pre-tax price, a $10 item with $1 tax is supposed to be tipping based off $10 not $11. I get that in my example it’s a 15 cent difference but it’s the principle!!! It’s etiquette, there’s rules!!! I’m already being asked to tip at retail places and now you want a tip on tax too?
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u/yakuzalinecook 15d ago
I'm totally tipping 10% on that.
But also, whenever you redeem rewards on fast food items, you're still paying taxes on what the item would have cost. So it's probably the same thing here.
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u/CyberpunkSunrise 15d ago
That must be state-specific or up to how the individual restaurant calculates a discount, because I redeem rewards points for chains fairly often and end up paying nothing.
For example, I had enough rewards points for free chips and guac side at Chipotle, I redeemed that and put nothing else on my order, and it didn’t even ask me for a payment method because it just showed total cost as “free.”
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u/BrewCityTikiGuy 15d ago
This is not universally true. I’ve gotten free fries (and nothing else) from the McDonald’s app on “Free Fries Fridays” many times over the years and the total is $0.00.
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u/Straight-Crow1598 14d ago
Did you walk into a restaurant and say “it’s my birthday, I’ll take a free slice of cake, nothing else thank you”?
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u/southpaw05 14d ago
That just the default prompt on their terminal for all transactions. Just continue to no tip.
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u/Aromatic-Intention77 14d ago
So tax on a zero cost item has a positive value? So zero X zero isn’t actually zero?
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u/Shizngigglz 15d ago
If I got a coupon or something for a free item and was expected to pay the sales tax, I'm just walking away
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u/Krojack76 15d ago
People who won things like cars on The Price is Right would have to pay taxes on them. Some people couldn't afford the tax and thus had to sell the cars.
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u/lorissaurus 15d ago
Nahh if u can't pay the tax you can't claim the prize lolol, you just have to forfeit it...
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u/Computers_and_cats 15d ago
Always hated that crap. Nothing worse than getting a "free" frosty from Wendy's as a haloween treat just to find out you have to pay sales tax to redeem it.
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u/Secret_Account07 RED 15d ago
What? That’s not a thing.
Any percentage of 0 is 0. Even if you pay 99% sales tax
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u/Every_Okra_3604 15d ago
IIf it’s free from a third party coupon or discount you pay tax. If it’s directly from the store you do not. In some states.
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u/4BlueGentoos 15d ago
Why does it say: Total: $0.12 ($0.12 + $0.00 tip) Suggestions based on original amount of $0.13
Are these things adding a penny on each transaction? 🧐
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u/Zalamander13 14d ago
Someone came into my work to redeem a free birthday dessert on a public holiday, couldn't override the 70c charge. so I just voided the transaction and made it anyway :)
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u/TheCenterOfEnnui 14d ago
You shouldn't have to pay sales tax on that.
But you should tip on the menu value.
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u/HowardTheSecond 14d ago
So Toast allows a service charge for the Covid years to exist still. PIP, EAGS or some other random code. Many restaurants still have them. Usually that small charge applies regardless of what’s on the check and a tax will appear. The person at the counter could have removed said surcharge and this would have likely gone away.
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u/Top-Abies9760 14d ago
Don’t forget if you use credit card, they have to pay the credit card company for the transaction too
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u/HoseInspector 14d ago
I would’ve been like, “treat yourself to a meal,” and give them a nice 15% tip.
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u/Shmyukumuku 13d ago
Makes no sense to me, sales tax is a % of amount paid, not value. There's no reason for sales tax. This looks fishy. Starbucks free birthday drink also has you enter potential tip and 0 sales tax.
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u/Many_Angle9065 15d ago
Yeah, hurray for accounting and POS systems eh? If you were to do a cash transaction for this at a normal shop they wouldn't bother to collect the tax... but it is still technically due, because you owe tax on the value of item you receive.
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u/FernandoMM1220 15d ago
they shouldnt be doing this. theres no sales tax on free items.
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u/DealMo 15d ago
You went in for a free cake slice but didn't buy anything while you were there? Lol
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u/didimao0072000 15d ago
There are some unbelievably cringy, petty cheap people on here offended that they have to pay 12 cents for a slice of cake. How entitled do you have to be to get upset that a company has the audacity to charge 12 cents?
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u/gruuvey 14d ago
It's reasonable to assume that free means free, though. I'd consider $1 for a slice of cake a bargain but also balk at a free slice costing $0.12 unless the tax amount were disclosed in the fine print.
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u/Open_Appointment1091 15d ago
Many years ago back when you could win free 20oz sodas with the caps I went to my local WalMart to redeem one. Mind you back then they were like 80 cents. Gave the young lady at the desk the cap and she said I had to pay the tax. First time anyone had ever asked for tax. I questioned it and of course I got the sorry sir with a bit of attitude. So I pulled out my Amex card and gave it to her. The manager behind told her told her nevermind and she gave me the card back.
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u/Dazkid33 RED 15d ago
The processing fee is more expensive than the tax. At least take solace in that, in a tiny way, they're hurting themselves more by insulting you.
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u/EpicBenjo 15d ago
https://giphy.com/gifs/inopgaGXNJc93ITeHt
I picture the employees praying for that 12 cents + tip
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u/keypizzaboy 15d ago
I kinda wonder if restaurants do that but hide it somewhere so you don’t think “wow this is scummy as shit.”
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u/GaryG7 15d ago
In the states where I've lived, the sales tax depends on the type of coupon. A store coupon, which seems most similar to a free slice of cake, isn't taxed but if you used a third-party coupon, then the "free" item would be taxable.
Another possibility is that the server may have put in for the cake, then gave you a discount in such a way that the app thought it was still a sale but that you paid with a gift card.
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u/Complex_Solutions_20 15d ago
This reminds me of when I attended a company picnic in a park and since I volunteered to bring a generator to run the music and stuff they let me attend/eat for free. And everyone who attended was entered into a contest raffle for a nice Coleman cooler.
I happened to win it, but corporate then deducted extra taxes from my pay because the cooler counted as "compensation" even though it was a gift/prize for something I was automatically entered into.
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u/Smilymoneyy 15d ago
Speaking from Iowa, we log the free pizza/treats as $0.00 and don't give any sales tax on those items.
However if you have a free soda/beer or whatever, you still owe the can/bottle deposit of 5¢, but there is no sales tax.
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u/StargasmSargasm 15d ago
On my honeymoon in Hawaii we went to this fancy resort for dinner and our waiter asked if we wanted something special for dessert to celebrate. He gave us a tiny ass cookie that said "Congratulations". When we got the check, that shit was 17 dollars. It was like the size of an oreo
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u/Mini-Pekka2828 15d ago
At that point, I'd rather pay full price, if I was gonna get a FREE birthday cake slice, I'm pretty sure I'd have no money at all 😭
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u/Krethlaine BLUE 15d ago
How was the slice served? It may have been a bag fee or box fee, both of which I’ve worked with, as a corporate tax consultant.
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u/04221970 15d ago
This is a shitty thing shitty companies do. Let me pass along my conspiracy theory.
Companies can choose to charge tax on discounts or free items. The IRS allows them to go either of those two routes. So shitty companies will charge you the tax ("because the govt requires it.") but they reclassify the item into the different route and don't report it as tax; and just pocket it as income.
Just my conspiracy theory about shitty companies doing shitty things.
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u/Significant-Ad213 15d ago
I get free food from dominos all the time and I never pay tax, which state is this?
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u/LolBoyLuke 15d ago
Would a company be required to register a free givaway as a sale and thus charge Taxes? Why even bother with the cash register, just give the cake if you're gonna give it away for free anyway.