Hi All,

I'm in California where the BOE requires tax on the sale amount before any discount.

After much reading, I think I have this figured out and wanted to confirm and/or share.

Create discount coupon - example 10% - under Certificate/Coupon / Insert

Adjust tax calculation under Modules / OrderTotal / Discount Coupon and set Re-calculate Tax to: NONE

(As well as Include shipping: false and Include tax: false -- so you do not discount the tax or shipping costs)

This way you collect tax on the amount before the discount...Since that's the amount California wants you to charge the customer and pay to the state.