A. DISCOUNT FOR PROMPT PAYMENT. If the tax is remitted to the Director on or before the due date required by rule GR-77, the taxpayer is entitled to deduct two percent (2%) of the state tax due and two percent (2%) of the city and county tax due as a discount for prompt payment of the tax. A taxpayer's discount for prompt payment of state tax shall not exceed $1,000.00 for each month included in the tax report, regardless of whether the taxpayer files a report monthly, quarterly, annually, or occasionally. A taxpayer who operates more than one location shall be entitled to one aggregate monthly discount of $1,000.00 for state tax, whether the taxpayer files one consolidated monthly report or separate reports for each location. There is no limitation on the discount for prompt payment of city and county tax collected and remitted to the Director. The two percent (2%) discount may not be deducted from prepayments but may only be taken on the excise tax report (Form ET 400). (See GR-84.)

B. FORFEITURE OF DISCOUNT. Failure to remit the tax on or before the due date shall result in a forfeiture of the two percent (2%) discount and the full amount of the tax due must be remitted. The forfeiture of the discount applies to taxpayers who remit their tax payments directly by cash, check, or otherwise, and to taxpayers who are required to remit tax by electronic funds transfer or other method of prepayment. (See GR-77.)