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SNAP Retailer Reminder - Sales Tax, Fees, and Refunds

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Important Reminder for SNAP Retailers

Proper Processing of Sales Tax, Fees, and Refunds for SNAP Transactions

Don't charge state or local taxes on items purchased with SNAP benefits.

icon of a cash register
  • For transactions involving SNAP benefits and another form of payment, only charge sales tax on the items that are not paid for with SNAP benefits.
  • If the SNAP customer uses manufacturer or other discount coupons, you may charge sales tax on the portion of the SNAP items paid for with coupons, but the customer must pay the tax with another form of payment (cash, credit, or non-SNAP debit).

Don't accept SNAP benefits to pay for fees.

icon of a shopping bag

SNAP customers are subject to the same fees that you charge to all customers, but they must pay for fees using another form of payment. This includes, but is not limited to, fees for:

  • Bags, containers, delivery, services, processing, etc.
  • Bottle deposits added by manufacturers or other entities, even if the fee is included in the shelf price.

Exception: SNAP benefits may be used to pay bottle deposit fees that are required by state law.

Don't give cash refunds.

no cash icon
  • Always issue refunds electronically back to the cardholder’s SNAP EBT account using the point-of-sale (POS) device.
  • Never give customers cash back for SNAP benefits. This is trafficking. It is illegal.

Please direct questions to RPMDHQ-Web@fns.usda.gov.

Page updated: November 21, 2024