Target.com Sales Tax calculation error

[yitzyk]

I ordered a pair of sneakers on Target.com for shipping to NY and they charged me sales tax. I am sure all DD'ers are familiar with NY State's tax exemption for clothing and shoes under $110.

Two weeks ago I ordered a similar pair of sneakers for the same price for Store Pickup and was not charged Sales Tax.

I called and Chatted with 3 different agents in India (all named "James") who all read the same script and gave me the same incorrect information - Including telling me to call the "Tax Department" by giving me their FAX number!

After talking to the third moron I was so frustrated that I called again and just asked right away to be escalated to someone who knows their tax system.

After a long wait I got an actual American who spoke English, and knew far more about my order and Target's Tax Calculation than they did - but not about the Tax Law apparently. She diagnosed that since the item was getting shipped as opposed to In-Store pickup, the Tax calculation is governed by the Item's location, which was in PA. She accurately calculated that I was charged the PA 6% tax rate.

I argued that the item's origin is not the determination of the Sales Tax, it should be the Shipping Destination. She advised me to "read up on Target's method of calculating taxes by searching for TAXES on their help page." She insisted that I was misinformed, and the document would set me straight. I found the document and boy was she wrong.

Here is what the page said:

How does Target.com calculate sales tax?
The tax rate applied to your order will generally be the combined state and local rate for the address where your order is approved or shipped. Therefore, the tax rate applied to your order may be different for an order shipped to your home address than it would be for the same order shipped to your work address.

The actual overcharge is only $1.17 - but that is just for me. Who knows how many other customers are being incorrectly charged by Target? Any lawyers or reporters out there that want to get involved in a scandal against a giant like Target.com? I already wasted far too much time on this, and someone ought to make some money off of this.

Should I send a threatening letter to their corporate address? Once upon a time these used to get attention, but in recent years I no longer get any responses at all from snail mail to corporate headquarters.

Your advice is appreciated.

[Dawie]

They are right
Is the Pennsylvania Sales Tax Destination-Based or Origin-Based?
Pennsylvania is a origin-based sales tax state, which means sales tax rates are determined by the location of the vendor, not by the location of the buyer. The origin-based method of determining sales tax is less complicated for vendors than destination-based sales tax, because all in-state buyers are charged the same sales tax rate regardless of their location.

[yitzyk]

So if I order something from Pennsylvania shipped to NY, I would pay both sales tax? The Origin from PA and the Destination from NY?

[Dawie]

So if I order something from Pennsylvania shipped to NY, I would pay both sales tax? The Origin from PA and the Destination from NY?

I believe all destinations sales tax states will give you a credit for the tax
so if NY has a 8.875 and PA a 6% you'd pay 6% as sales tax and 2.875 to NY as use tax
But the remote sellers  wont collect the Use tax
I'm not sure what happens when you mix in local taxes

[yitzyk]

This is not getting any simpler. According to the Pennsylvania Code:

§ 53.2. Footwear, footwear accessories and footwear repairs.
 (a)  The sale at retail or use of footwear is not taxable unless the footwear is of the type normally worn for formal, sport or athletic wear. Therefore, ordinary shoes, overshoes, safety shoes and sneakers are not taxable. However, shoes for formal wear, ski boots, bathing shoes, bowling shoes, golf shoes, baseball shoes and football shoes are not exempt from tax.

So in any case, regular sneakers in Pennsylvania are also exempt from Sales Tax.

I'll add this to the total tally of time I have wasted on this.

[yitzyk]

I think I almost figured it out. I shipped it to my daughter in camp. Although NY State exempts shoes from sales tax, and NY City does so likewise. other local municipalities may still have a local sales tax. I don't know what the local tax rate is for that area (- State 4%), but it may be the cause of the sales tax.

[yitzyk]

That was it - the tax rate is 4% for Sullivan county.

[Dawie]

The software that these companies use are usually right
What we need , and aren;t going to get anytime soon is a uniform sales tax or GST.
With over 9000 taxing jurisdictions in the USA it's is impossible to do business without good sales tax software.

[incendia]

This is not getting any simpler. According to the Pennsylvania Code:

§ 53.2. Footwear, footwear accessories and footwear repairs.
 (a)  The sale at retail or use of footwear is not taxable unless the footwear is of the type normally worn for formal, sport or athletic wear. Therefore, ordinary shoes, overshoes, safety shoes and sneakers are not taxable. However, shoes for formal wear, ski boots, bathing shoes, bowling shoes, golf shoes, baseball shoes and football shoes are not exempt from tax.

So in any case, regular sneakers in Pennsylvania are also exempt from Sales Tax.

I'll add this to the total tally of time I have wasted on this.

It looks like sneakers would be taxed in PA

[yitzyk]

They mean dedicated to a specific sport or athletic. The next sentence is a good clue:
 ordinary shoes, overshoes, safety shoes and sneakers are not taxable

in the actual tax code where I got this paragraph from, it continues to provide a detailed list:
"However, shoes for formal wear, ski boots, bathing shoes, bowling shoes, golf shoes, baseball shoes and football shoes are not exempt from tax."

I specified "regular sneakers" in an earlier reply.

[gozalim]

on that note:
it seems that google express now shows 'estimated' taxes at checkout?
https://support.google.com/express/answer/6000296?hl=en

i.e. if the store has no nexus in the customer's state, they'll still show estimated sales tax at checkout, even though on actual billing there should be no tax...