Sales tax on returning items bought in NY to NJ?

Question

I just purchased a coat that is over $110 in NY but would like to return it in NJ where I live. Will I get a full refund in sales tax ? A friend of mine just told me that the sales tax will not be refunded if I return an item over $110 from NY to NJ.

Please help!

Thanks...

Answer 1

As far as I know, retail companies look at the receipt and refund you what you the total that you paid. So, if you paid $125 with tax, you will be refunded $125, regardless of what you would have paid in NJ.

The reason for this is that NY tax and NJ tax are different from one another. The tax that the store collected for NY state went into the store bank account and is then paid to NY state. If you return the coat in NJ, money from the exact same bank account is going to be given back to you. (Money in fungible, meaning that any dollar can be exchanged for one another.)

Since you're not going to own/buy the coat, no tax needs to be collected and must be refunded to you. If the store keeps the tax, they are wrongly charging you in name of the government, and that constitutes fraud.

Answer 2

Sales Tax is a pass through item. The stores are collecting it on behalf of the states. Technically, the stores have no obligation to refund you the higher amount but, it the name of customer service, may.