Overcharging Tax

I did take-out for lunch today and realized after leaving they charged 7% sales tax. Why would a store do that ---- I'm pretty sure they can be fined for overcharging tax.

happiest girl
March 19th

I would also say they've been doing it for the last 2 years since it was an incremental decrease.


There are some people's retail systems or cash registers that don't have a way to do 6.625%. It's not often but yes, they are around.


Considering what they are doing is illegal you would think they would be eager to get a new cash register.

happiest girl
March 19th

They will Happiest, in time. They are building a new register fund at .375% a time per sale! LOL.


LMAO... yea that .375% is a killer right....

Metsman Metsman
March 20th

i'm sure they donate it to the State...… :>(

strangerdanger strangerdanger
March 20th

Is this wrong?: An item is marked down to $20 from $40. The boutique/store charges State Sales Tax on "$40.00".

Should this be reported to whomever?

Hackresident Hackresident
March 20th

yes. that's wrong.

3wbdwnj 3wbdwnj
March 20th

Sounds fraudulent to me.

Contact these folks:

https://www.state.nj.us/treasury/taxation/ratechange/su-overview.shtml


https://www.nj.com/business/2018/05/what_to_do_if_youre_charged_the_wrong_sales_tax.html

heres an article about it with resources


What I always wonder is those businesses charging 7% tax are actually passing all of the taxes on the uncle NJ...


iJay,
Obviously, I can't speak to what these businesses are actually doing, but the law is written such that you owe the State the greater of the calculated tax (taxable sales x .06625) or the tax collected. So, if they are accidentally collecting the 7%, they are legally obligated to hand that over to the State.

Regardless of what they are doing, the OP (or anyone for that matter) should go back to that establishment and ask the manager for a clarification. Then, if they still refuse to refund the money or make the change, contact the State. Not trying to make an excuse, but is it possible the receipt could have just rounded the tax rate up on the printed receipt but charged the correct amount?


I am talking about a business taking a large percentage of the sales CASH. The fair assumption is that they are not reporting all of the sales tax, and probably not all of the sales too...


I once worked with the owners son of a fast food restaurant and he purposely set the tax rate in the computer a fraction of a percent higher than the sales tax rate. A customer noticed that he was charged an extra penny for his order and of course I just said it must be right because that’s what the register spit out. He left the store but called later and said we better fix it or else he was going to the newspapers about it. Needless to say, I called the home office and then it was straightened out. You think one or two pennies no big deal but we had a thousand transactions a day and more on the weekends. This was probably thirty years ago.


maybe this explains it -

Superman III — Richard Pryor — half cents and Ferrari scenes

https://www.youtube.com/watch?v=N7JBXGkBoFc

GreyHawk GreyHawk
March 22nd

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