ordered a car part from retailer, got it, returned it, and they will only refund the parts price, not the CA sales tax. They claim its thier company policy to not refund sales tax...can a company just decide to pocket your sales tax like that???
2006-10-20 11:29:04 · 8 answers · asked by shifty101easy 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Also, this company is in New Jersey, so how are they charing me, im California, sales tax??? I reported them to the BBB, what else can i do?
2006-10-20 12:59:19 · update #1
Nope, totally against the rules.
They'll report the return when they send in their quarterly reports, and therefore will pay a smaller amount of taxes.
They are supposed to refund the sales tax, as well.
2006-10-20 11:37:32 · answer #1 · answered by abfabmom1 7 · 0⤊ 0⤋
On the surface, most people would say that the retailer is clearly violating the law. However, I would say the facts are not clear enough to determine this.
The overly simple answer is that, the retailer may not keep the sales tax you have paid. However, I'm not sure that is what is happening here, and even if it is, I'm not sure that is anything you can do other than complain and maybe encourage the BOE to audit the retailer.
First, there is no law requiring a California merchant to accept refunds at all. If a merchant does, there is no law (that I am aware of) that requires the merchant to refund the full sales price. As a matter of fact, it is customary for many merchants to charge a "restocking fee."
Now, any amount of sales tax that a California retailer charges and/or collects over the amount required by California law must be remitted to the state. If the retailer already remitted the tax, and does not plan to claim a credit for the refunded item on a subsequent California sales tax return, then the retailer has not enriched itself as a result of the overcollection, and no law has been broken. The trouble is, there is no way for you to know if the seller is pocketing the tax or not without access to the workpapers they use to prepare their financials and their sales tax returns. Even a very detailed auditor might not detect this, because the amount of tax would probably fall under any materiality threshhold of the auditor.
Unfortunately, the only recourse you have in Calfornia to recover any California sales tax that was overpaid is directly with the seller. You will not be able to go to the state to ask for your money back. If the seller refuses to refund you your money, you're SOL.
Sorry to be the bearer of bad news. If you are really unhappy about the situation, you might complain to the retailer's management, or stop doing business there.
2006-10-20 12:08:46 · answer #2 · answered by Eduardo Fisher, San Jose, CA 3 · 0⤊ 0⤋
No. They are not allowed to have that policy. You cannot make a policy or enter into a contract that is illegal. So it wouldn't matter if they wrote it on the receipt in blood. It is illegal.They are charged sales tax based on the volume of sales they have not on each individual item. So they are illegally pocketing sales tax. Call them and offer to report them to the state board of equalization. Defrauding the government and pocketing sales tax is illegal.
Here is the sweet part if you do report them the state board of equalization will freeze their assets without a trial. They will investigate it and refund the money to whoever they did this to from the company's bank accounts, then they will fine them.
You never never never never want to mess with the State on sales tax. The IRS will let you go to court but the State has no provision for court. They just come in and take your money. I know form personal experience. I was late paying my sales tax and when I made a deposit to my bank it disappeared. They took it. The last thing these idiots want is this.
2006-10-20 11:37:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is true that California sales taxes are slightly higher than average (but are not at all the highest, yet). However, people complaining about California taxes always forget about one thing: California has almost the LOWEST property tax rate in the United States. Only Hawaii and Alabama have lower rates. The money to run the state has to come from somewhere.
2016-05-22 06:00:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Every state that I've lived in required the refund of sales tax. I would check with your county tax revenue or tax collector. Sounds shady to me too.
If you signed something which conflicts with a refund you may loose...but I'd give a call to the State come Monday morning.
Good Luck...
2006-10-20 11:35:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They can't keep the tax if you returned the item. I would call the better business bureau, or your local news to do a investigation. They cant keep tax on an item they did not sell.
2006-10-20 11:37:03 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Illegal. Call the Tax department.
2006-10-20 11:31:11 · answer #7 · answered by Anonymous · 0⤊ 0⤋
illegal, report them to the local state tax attorny
2006-10-20 11:37:37 · answer #8 · answered by burnttoast97 4 · 0⤊ 0⤋