Radio Shack Is Levying The Wrong Sales Tax In New York City
Radio Shack is charging New York City consumers an extra half-percent of sales tax, even though the State hasn't approved a new tax rate. Before descending into a chaotic mess of embarrassing inaction, the New York State Senate was widely expected to hike the sales tax New York City's local sales from 8.375% to 8.875%. That never happened, a minor detail that isn't stopping Radio Shack from collecting more tax, as reader Jeff discovered...
He writes:
Just came back from my local Radio Shack and when I got home noticed the sales tax was set at 8.875 instead of the usual 8.375. You see the tax rate was supposed to go up on July 1st but because our State Senate has been in a stalemate for the last few weeks nothing has been done, including passing the new sales tax.I called a friend of mine who happens to manage a Radio Shack and asked him what was up and he told me that the computers are programed from the district office and he had called them to let them know of the error a day ago but it has not been fixed yet.
So just let shoppers in NY to keep an eye out for the tax rate while shopping at Radio Shack this weekend.
RELATED: City Council Endorses Sales Tax Increase [The New York Times]
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Comments:
@savdavid: If they can't fix it at the point of purchase (most likely), hold on to the receipt. The tax folks pay attention to their pennies, at least when someone else points it out to them. RS will have to refund.
The way I hear it (from past employers), a lot of states don't have any rules against overcharging on sales tax, as long as that money makes it back to the state and doesn't just get pocketed. It's a lot more common than I had originally realized.
@TerribleDecade: it was a name brand, sandisk. the card you are pointing out isn't a name brand. also, you don't know the reason he needed the memory card... he might have needed it then and there instead of waiting for it to be shipped. the same site sells the sandisk for 9.99 and with shipping comes out to be $12.94.
it is funny how the "list price" of the sandisk 2gb sd card is $69.99. anyway, paying $1.20 for the convenience of having it the same day isn't outrageous.
How shady!
I purchased something for $59.99 just yesterday, and yes, I was overcharged by 0.5%!
It's only $.30, but I will go back to the store just to let them know.
I know, not 100% related. But you can get 2GB of flash memory for much less than $12.99 at a CompUSA or even Target.
Save yourself the hassle, shop elsewhere.
There's a rounding error too... 8.75% of $12.99 is $1.136... that SHOULD round to $1.14... He was actually charged just over 8.85%
@computerwiz3491: Nevermind... They actually rounded down... I need to pay more attention to the details.
@fantomesq: Regardless, tax in a lot of places is not determined by a straight division - for instance, in New Jersey, there is a tax table that says how much tax is charged for each value.
For instance, if we were to actually go by rounding, then our 7% sales tax would go as follows: .00 to .07, 0¢; .08 to .21, 1¢; .22 to .35, 2¢; .36 to .49, 3¢; .50 to .64, 4¢; .65 to .78, 5¢; .79 to .92, 6¢; .93 to .99, 7¢.
The actual table is: .00 to .10, 0¢; .11 to .19, 1¢; .20 to .32, 2¢; .33 to .47, 3¢; .48 to .62, 4¢, .63 to .77, 5¢, .78 to .90, 6¢, .91 to .99, 7¢. Not quite the same.
@DAK: That seems incredibly arbitrary and annoying - what's the point of a tax rate if a store can charge a different one so long as the government gets their cut?
This does not apply to the rest of NY state, apparently. at RS now, checked my receipt, and it says 8.375% as expected. your RS employee CAN tax-adjust the rate though, so do ask. failing that you can claim it on your 2009 income taxes. :)
I would say I like living in Oregon where we don't have sales tax, but my last paycheck had ~33% of it taken out for taxes. At least with a sales tax it would do me better since I rarely buy anything besides groceries (do those even get a sales tax in most states?) and anyway, 8.XX% <<< 33%. Bah.
This doesn't surprise me. What peeves me off is all of my local pizza places.. they charge you $2.00 for delivery.. and then tax that $2.00.
@allstarecho: I'm not surprised - recent changes to our state's tax laws provide that a shipping or delivery charge for a taxable item is itself taxed.
The Radioshack tax lawyers/accountants might believe that the NY senate will retrodate the tax, so even if it wasn't past till after July 1, all stores might have to still pay it (Look at what happened with the retroactive fee increase for internet radio, backdated 2~3 YEARS!)
@ajlei: I believe you're combining your federal and state withholding. The top rate in Oregon after credits is 9%
Are retailers required to show the sales tax rate on the receipt?
@silver-bolt: I'm no lawyer but as far as I know, for a state to levy a sales tax increase retroactively would be ... well, difficult to accomplish, if not illegal. Even if it were possible, it is not how things are usually done. So this excuse/rationale, even if Radio Shack were to put it forth, seems a bit thin.
Cash? Silly person could be getting rewards.
I could have sworn last weekend I paid 8.125%.
I magically ended up paying LESS tax on a dress this week - on July 1 most places in Los Angeles County went up to 9.75% sales tax, but I noticed well after I made the purchase that I was only charged 9.25%, last week's sales tax!
It was so super-discounted (end of season clearance), though, I would've gladly paid the full tax!
According to my time in some criminal justice classes, that would fall under ex post facto. You can't be tried for for a law that is written after after you performed the act. Thus I question how it would legal to have a retroactive tax.
And wasn't one of the phone companies fined a few years ago for collecting a fee/tax that had been taken off the books? Would this not be just as bad?
@lotussix: Buy.com has a 2gb micro Kingston w/adapter for $6.99 and a 8gb micro w/adapter for $16.99, both w/free shipping.
@CameraShoe_GitEmSteveDave:
Which would be great if he needed it a week or two later and not that afternoon...
I know we're all mega connected geeks and all, but pointing to newegg/buy.com/monoprice etc. when we see someone make a purchase from a bad retailer doesn't address the issue of needing something now and then.
Get those sites to open B&Ms and well see if they keep up the awesome pricing and service standards.
@Moosehawk: How will it save me 5-6 bucks when they charge only 2 bucks? Not to mention the gas I'd use to go pick it up. I'm fine with paying the 2 bucks, just not fine with it being taxed.
@savdavid:
I'm a radio shack manager in Pennsylvania. we can manuelly adjust the sales tax percents...they probably are supposed to do it manuelly until they fix it universally...but if they don't, mention it to the associate and they will fix it.
they should refund the tax when you go in...it's really just a mistake, that someone at fort worth probably overlooked.
@Feedloadr: Retroactive laws get passed all the time. You can get tried for them, but then your lawyer can argue that it is Ex Post Facto, and if the judge, most likely, rules against you, you're boned.
Additionally, a quick look on wiki linked to [supreme.justia.com] US vs. Carlton, the Supreme Court ruled retroactive taxes where legal because it made the US money, or "the better good".
Same reason behind legal discrimination for a rational, reasonable reason.
@SpaceCowgirl01: Ok, it's been 3-4 years since I lived out that way, but is it really that high now? 9.75%? CA state income tax isn't exactly light either.
So he tells them to keep an eye open. OK. Then what if the tax does show up on their receipt?