My policy has been “it’s full price or it’s free.”
Don’t discount. Give it to them and invoice it as full price, marked down with a 100% family rdiscount. Or charge full price.
They’ll value a $400 art piece they got for free much more than the same piece that they argued you down to $40 on.
Yeah, it’s California.
I bought a plane from a guy who lived in California - I flew commercial to meet him in Vegas, then I flew the plane all the way back home to nearly the Atlantic ocean.
Of course California threatened to sue me because I wasn’t paying them taxes on the aircraft, even though I don’t live there and I’ve never flown the plane there. Ended up getting it fixed, but from what I can tell California will go after any revenue they think they have even a tangential claim to, and if they think you can be intimidated, tricked, or otherwise forced to pay then they have no problem doing so.