I discovered to day that Walmart charges a sales tax on a non-taxable item. So I

[Malraiders]

informed the sales person that the item should not be taxed. I was told that the computer/cash register was programmed to automatically add the tax, so there was nothing that could be done about the tax charge. I guess Walmart takes the opinion that if the tax was to be refunded, then the store would be out of pocket.

The Customer service person I talked to was more ready to defend the tax and argue why she thought thwe tax was valid than to apologize or even get to the truth of the matter.

So I called Austin and informed the Comptroller's office (who agreed that the tax charge was a mistake) and was told to report the bogus tax charge to the local Tax Enforcement Office so that they could investigate Walmart and see that the practice was put to an end.

I called and filed the co,mplaint with the enforcement person and he stated that the matter would be taken care of.

I then called Walmart and informed them of my calls. The lady seemed detached and noy interested actually.

So I will see if the tax (that no other local super market or any local Dollar General or Family Dollar Stores that I frequent charges) will be removed by Walmart.

I am surprised that the big corporate Walmart store could be so wrong to charge a tax where none should be charged.

A big arrogant corporation that fails to follow the rules. Big surprise, Not.

[delrem]

1. In the long run you'd be better off to do business with small, local dealers and retailers.

But if you want to do your business with Walmart, I have little sympathy.

[RKP5637]

4. And, Walmart is not always cheaper, that is a ruse they use to sucker in customers! n/t

[LiberalFighter]

77. Mostly not cheaper.

They might get around it by comparing name brand with generic.

[eggplant]

44. The OP wasn't asking for your sympathy. n/t

[delete_bush]

62. Mindless potshots are

so easy to take, aren't they.

[eggplant]

85. They are.

And with this particular poster, it got them a five-hidden-post timeout.

[RKP5637]

2. Exactly! "A big arrogant corporation that fails to follow the rules." And

they try to promote themselves as the 'peoples' store. Total bullshit! They are in it for $$$$$ and will roll over anyone be it a customer, competition, community, state or country. In short, Walmart does not give a damn.

[DontTreadOnMe]

3. What was the item? 1000 DU'ers should go to Wal-Mart around the country

and see if they are taxing other items as well.

I am willing to bet the mortgage this is not just one item in the database.

[Malraiders]

5. The item was a large bag of chips. And as I told the enforcer's office,

I would be willing to bet that every other large bag of chips was taxed at the cash register also.

[Malraiders]

17. From the State it says:

<quote>Examples of Nontaxable Items

Snacks
• breakfast bars
• chips
• crackers
• granola bars
• nuts (not candy-coated)
• popcorn
• pretzels
• protein, nutrition or
sports bars (unless labeled
and marketed as candy)
• snack mix
• trail mix
• yogurt bar</quote>

From: http://www.window.state.tx.us/taxinfo/taxpubs/tx96_280.pdf

[A Simple Game]

26. If you have a point you're trying to make could you share it with us? n/t

[delrem]

33. Not unless you throw in a large bag of chips. nt

[Liberal_in_LA]

38. u mademe laugh. now stop being an ass

[intaglio]

68. And your point is what? The OP rightly points out criminal behaviour by Walmart

Behaviour that increases it's profits and you moan about the number of posts the writer of the OP has. Grow up

[Live and Learn]

9. Might make a nice class action suit for some law firm to make a lot of money from.

Not sure I could stomach going to Wal-Mart long enough to even get the evidence myself.

[BrotherIvan]

11. Think about if they were taxing all food every day

Even just snack foods, it would be a scam of epic proportions.

[Live and Learn]

15. Of course, that money may be going to the State anyway.

I found a similar occurrence in a CBS news story about convenience stores.

http://dfw.cbslocal.com/2010/11/15/some-convenience-stores-taxing-tax-free-items/

A CBS 11 investigation found some convenience stores overcharging customers by applying sales tax on snack items that should not have taxes attached to them.

When it comes to most snacks – peanuts, popcorn, potato chips – customers have a right to partake without giving the state of Texas a part of their pocketbook. Under state law, most food items are tax free, but stores in Dallas, Plano, Garland, Richardson and Colleyville charged tax anyway.

Cliff, a Plano resident who did not wish to use his full name, noticed he was routinely paying seven cents too much for snack cookies in at least two dozen convenience stores in the Dallas, Fort Worth area.

snip>

But storeowners and employees said that when tax is charged, the state still gets the money.

The article goes on to say that states are supposed to audit the stores to ensure this isn't happening.

[BrotherIvan]

16. Knowing WalMart I would take a bet that it's not

It could just be laziness, but it could be a scam. They're making their workers pay for their own uniforms!

[Live and Learn]

30. I wouldn't put it past them but that is probably very illegal. nt

[Malraiders]

25. The store becomes the State's agent when the state

empowers that store to collect the state's tax that is the most unfair tax levied against the most needy in our society. For that reason alone, the state should do all in its power to insure that food is not taxed, especially when the most needy consumers are the buyers.

[Live and Learn]

31. Very true and that is what the state responded.

But since enforcing it would cost the state money by hiring more people to enforce it and losing revenue by ending it, I doubt it is a high priority.

[Rhiannon12866]

42. It's very true that WalMart's poorly paid employees are its customers.

On one of the news shows (or maybe Bill Maher ) reported on how much prices would go up if they paid their employees a decent wage. It turned out to be a penny or so more for an average grocery item.

[PoliticAverse]

53. Some states do not tax regular food but do tax conveience and/or snack foods. n/t

[jeff47]

10. What's taxable and what is not taxable varies by state.

It's a sales tax, so it's a state tax.

[Live and Learn]

14. I can't find any state where a large bag of chips is taxed. nt

[BrotherIvan]

18. There is a spreadsheet on this page you can download

Some charge the same as sales tax (California) and some charge 0% such as VT, IL, or MO.

http://www.bridgingthegapresearch.org/research/sodasnack_taxes/

[Live and Learn]

28. I should have said any state that exempts food from sales tax.

I didn't go through the entire chart but from what I did see it seems that only the states that tax food in general tax chips.

It really isn't even as simple as the chart makes it though because some states charge for a single serving package of chips but not a large bag.

[CBGLuthier]

24. all food is taxed in Oklahoma

Disgusting as it is, all food is subject to sales tax in Oklahoma.

[Live and Learn]

29. And Alabama. Go figure. nt

[JustAnotherGen]

76. Are the state income taxes in Oklahoma

IE Personal Income Tax? Or just property taxes?

[CBGLuthier]

83. We got both of those too

Oklahoma is a fuck the poor with taxes kind of state. To be fair the property taxes are not too stiff but when you add all the taxes up and then look at the shitty roads and lousy schools I think we are getting screwed.

[Terra Alta]

82. In NC as well.

Unless the person is using EBT/SNAP.

[sunnystarr]

41. TN taxes food (nt)

[Live and Learn]

45. It seems a lot of red states tax food. nt

[former9thward]

91. Very few states tax food, red or blue.

States that tax groceries (rate if not fully taxed): Alabama, Arkansas (3%), Hawaii, Idaho, Illinois (1%), Kansas, Mississippi, Missouri (1.225%), Oklahoma, South Dakota, Tennessee (5.5%), Utah (1.75%), Virginia (1.5% + 1% local option tax), and West Virginia (5%).

http://taxfoundation.org/blog/which-states-tax-groceries

[jen63]

46. And Mississippi

[Art_from_Ark]

88. Arkansas taxes food items

The rate on my last grocery receipt was 4.5% for most food items, although the energy drinks were not taxed.

[Jackpine Radical]

81. The list of taxable items varies from state to state.

You'd have to look for a different item list in each state.

[Autumn]

6. Whatever the tax was on if they sell thousands a day that adds up.

[silvershadow]

47. What to you want to bet they don't forward all taxes collected to the state? Probably just actual

taxes collected on taxable items. That sure would pocket them a nice little pillow of hundred dollar bills over the course of year.

[rhett o rick]

50. I doubt that they get the money. If their computers are set up to add it as

sales tax, that same computer will tell the state that they collected it. Still not good news for the consumer.

[silvershadow]

58. I don't necessarily think the state has a real-time access to their computers...do you?

I mean, it's not like they hit a few keys and x out their drawer or z it out at the end of their shift and then suddenly the state knows what is owed. The state largely goes off of what Walmart or any retailer reports to them, long after the shift- and long after the accountants have done their wizardry, and submitted documents etc. Yes, the documents etc may very well be electronic, but they sure aren't automatic, at least that I know of. ?

[valerief]

7. WTF are you doing shopping at Walmart? nt

[delete_bush]

63. It seems a number of DU'ers shop

at Wal*Mart. What makes you so superior to them?

[valerief]

78. Walmart is the devil. nt

[customerserviceguy]

84. That's true

but I suppose that some have little choice.

I needed some black RIT dye today, and tried finding something at the local Dollar Tree. The person stocking shelves said they didn't have anything like that, so I figured I'd have to go to Target. I hate them and Home Depot for doing IT on the cheap and screwing over their credit card customers. Another shopper overheard the conversation said it was at A. C. Moore, a local crafter's shop that I've never been in. Sure enough, I got what I wanted without going to an establishment on my "list", but not everybody has an effective amount of choices.

[herding cats]

8. I'm glad you stood up to them. Good job!

Some people here don't get that for certain people there isn't another option always available. Ignore them and know you did the right thing here.

[IdaBriggs]

12. Isn't it fraud if they collect taxes and don't turn them in to the government?

My question is whether the auditors are checking that all taxes are being paid by comparing what they SHOULD PAY versus what they are collecting.

For example, reported collected taxes total = $100k.

Owed taxes, based on goods sold that are taxable = $75k.

Depending on which report is used, are they paying the state the $100k or the $75k?

Either way, isn't that fraud and/or theft - and don't their auditors/accountants/executives need to worry about jail time as a result?

Don't mess with the tax man!

Good for you for being aware of it AND reporting it!

[delrem]

32. I guess that when something is rung in as "tax", it goes to taxes.

Unless you're suggesting that the (underpaid and underappreciated) cashiers are "in on the scam"?

As for whether this large bag of chips should be taxed, I'm sure the OP is correct.

Here in BC there are some taxes on "junk food" that aren't applied to "real food" (hmmm, I should check to see whether those are still in place...) and there was a perfect storm in a teacup on that. We all hate taxes!!!

But for his local jurisdiction, the OP is no doubt correct and should feel proud at perhaps regaining those several $.01's on his large bag of chips. Or should feel righteous anger at Walmart if justice hasn't been done!

[IdaBriggs]

73. The cashiers do what what the registers tell them.

It gives them a total, and they collect it. The scam would be in the financial book keeping section. Those pennies add up very quickly when you are selling hundreds of thousands of goods daily.

[Art_from_Ark]

89. I was in BC when the GST was introduced

Brian Mulroney's lasting contribution to the Canadian economy-- and he had to ask the Queen for permission to pack the Senate with 20 new permanent senators to get his precious tax passed.

At any rate, I remember salted nuts being taxed at the new 7% GST rate, while unsalted nuts were not taxed.

[Veilex]

35. "Isn't it fraud if they collect taxes and don't turn them in to the government"

Its potentially fraud if they collect money under the guise of taxes when none are due... however, there's the issue of proving intent.

[IdaBriggs]

74. If they made an oops and are sending the government more $$$ than are due,

That is one thing. If they are collecting them based on programming in the cash register ("this item is taxable&quot but keeping the money because financial reports summarize goods sold, which they then pay taxes on, then it looks to me like either a fraud situation, or some big time Bad Accounting (which just coincidentally is being treated as free money for the store).

Interesting....

[PoliticAverse]

56. More likely the collected tax was automatically forwarded to the government(s) involved. n/t

[No Vested Interest]

19. So glad that you spokeup and acted on this. In addition, it would

be good to put your finding in writing to the Comptroller, with copies to different levels at Walmart, including the manager of the store you visited.
You could even send a copy to Gov. Perry.

[Mr.Bill]

23. You're assuming that Gov Perry can read?

[No Vested Interest]

21. There are likely records of the total number of that item sold in that store

and elsewhere, and therefore, the amount of money collected.
When these mistakes (or sometimes, fraud) happens, the store has to offer some kind of refund to a general customer base.

[Brother Buzz]

22. I made a stink on taxes after a visit to Walmart

I purchased four packets of of non GMO seeds for a whopping eighty cents. I had exactly eighty cents in my hand, ready to tender, and was pissed when the total came to 83 cents. What, taxing vegetable seeds in California? The cashier said he could do nothing about it and suggested going to customer service. While I was stewing in my juices, marching over to customer service, it dawned on me two of the packets were flowers, Alyssum, and were taxable in the state. I went back to the cashier, ponied up an additional three cents and apologized.

True story.

[Omaha Steve]

27. I see a penalty in Walmart's future

Good job.




K&R!

[FuzzyRabbit]

34. Where you spend your money

can be a powerful statement. For example, I never shop at Walmart or Target as both companies rip off the workers and the communities where they are located.

Instead I shop at locally owned or unionized stores that pay their workers twice as much as Walmart and Target and other big box stores. Therefore more of my money remains in my own community rather than going to the out of state owners of the big rip-off stores.

And guess what? It doesn't cost me any more to shop at the smaller independents or union stores, and I get much better customer service.

[ybbor]

86. I'm with you

Mom and pop stores for me for all that you have mentioned.

Keep it up.

[gvstn]

36. I worked in a grocery store when scanners were first installed.

When a new item came into the store it had to be scanned assigned a "department" which determined if it was taxable and a description and price entered. There were tax guide booklets with lots of categories/departments in them but some could be easily missed. This was in Penn. so toilet paper was non-taxable because it was a "necessity" but toothpaste/toothbrush was taxable? Most Health&Beauty Aids were difficult to figure out without explicitly looking it up. This was a mom&pop deal with just two stores, so I was overworked and know I made mistakes when entering some new items as to their taxability since I lived in another state and had no intrinsic knowledge of which items were taxable.

My boss would have apologized, refunded the tax and told me to fix it. The problem with these big box stores is that customer service is anything but service. They always act bored and begrudgingly try to fix things if they ever try to fix things at all. I never get as far as the customer service counter in a big box store, if I see something wrong at checkout, I make them come to me and if they don't fix it at the register then I tell to them to remove the item from my charges.

Walmart is the saddest store I have ever seen as far as employee morale. I can't even get mad at poor customer service there. They treat their employees like idiots how could a customer expect better?

[Sherman A1]

66. Precisely

I agree that Wal Mart (and more & more retailers) treat their staff as nothing more than "mindless hands and feet". I think the OP did the right thing in following through on their complaint, but I certainly would not have expected much from the in store employees as they simply have no incentive to do anything beyond the minimum.

Retail work at one point was something more of reasonable pay, sort of decent hours & working conditions. With the Wal Martization of Retail, that is not so much the case any longer.

[SheilaT]

37. While I certainly do not know

very much about the programming of cash registers, it's probably not that hard to program them correctly, so that they charge sales tax where it applies, and not where it doesn't.

In addition, it makes a huge difference as to exactly where the cash register is, whether just a state tax or a local tax or some combination of the two apply. Most retailers seem to get it straight.

But I don't understand why anyone who posts here ever goes to a Walmart. Why not just directly donate to Republicans, if that's what you really want to do.

[delete_bush]

64. Aren't you smug...

But I don't understand why anyone who posts here ever goes to a Walmart. Why not just directly donate to Republicans, if that's what you really want to do.

I've read numerous posts from DU'ers who have no other choice. One was from a woman who stated that she...

"shops at Walmart because it's about the only place I can afford or get a USB headset for under 10 bucks and that's close enough for me to limp to. I hit a dollar store first but sometimes I have to shop at Walmart because it's too far to limp to the dollar store and the Amarillo bus system blows. I hate it but that doesn't mean I don't care."

So tell me, oh smug one, how you would respond to her? My response was "As much as I hate Walmart, and for numerous reasons, I've never by extension applied that to those who shop there. I'm sure your story is not unique, and you've got to do what's best for you.


I'd love to hear your admonishment and take down of the poster 'tazkcmo'.

Give it your best shot.

[SheilaT]

67. Since Walmart is rarely the cheapest place in town,

I don't understand why people continue to shop there. The few times I've actually compared prices, Walmart is the more expensive option. Makes me wonder how carefully people are actually checking.

Oh, and it's not just my admittedly few comparisons. Essentially every time someone does a real comparison, guess what? Walmart is still not the cheapest.

Recently someone told me they shopped at Walmart because it was the only place they could get (I think this was the number) six packages of Ramen noodles for a dollar. Hmmm. A while back I bought ten packages of Ramen noodles for a dollar at my Albertson's.

Explain to me again that Walmart is the cheapest option?

I understand if someone is walking everywhere, and the Walmart is literally the only place within walking distance -- I've been there, no car -- but for those who have a car, I cannot believe that so very many people live so many miles from an alternative.

[tabbycat31]

70. Sometimes it's the only place in town

[SheilaT]

71. I get that.

But the places where it's the only place in town don't cover a huge percentage of the population, and far too many people who have choices choose to shop there.

[liberalhistorian]

39. I refuse to set foot in Wally World

or give it one single penny of my money.

That being said, how much you wanna bet that they actually know that they can't tax the items, but tax them anyway and then pocket the extra profits? Anyone? Anyone? Bueller?

[delete_bush]

59. Highly unlikely that this is the case.

Another knee-jerk reaction based on... nothing.

[Manifestor_of_Light]

40. We who live in the country don't have choices.

I said this in another thread yesterday about using public transportation, shopping at locally owned businesses and such. Wallyworld has taken our choices away. We don't have locally owned businesses. We have dead downtowns. And the local service businesses are either rude, incompetent or both (plumbers, air conditioning people, auto repair).

I live 150 miles from a Costco. It's easy to be a liberal and support small businesses in the city.

[delete_bush]

48. I recall reading your prior post.

I find it more than pathetic that a large number of DU'ers chastise ANYONE who shops at Wal*Mart. I remember another poster - finding it necessary to defend herself - stating almost apologetically that if she could "limp" far enough to another store she would.

One can go after Wal*Mart in general without taking it out on those who, for whatever reason, shop there.

[Manifestor_of_Light]

52. This argument pops up almost every day at DU.

Constantly. Like some kind of a liberal litmus test. Wallyworld took our choices away from us a long time ago.

[delete_bush]

57. There seems to be a number of

'litmus' tests around here. Some are so outrageous that I highly suspect them to be 'outsiders', but there's always a flock that eats them up without question.

[Live and Learn]

60. Yep, when we were on vacation in Hawaii (the actual island of) several years ago,

we basically had no choice either.

Surprisingly the store was much better than the ones I had been to in CA when they first opened here (and WalMart hadn't started its campaign against America yet or more likely it had started but wasn't well known to the public yet). I couldn't stand the stores that had opened up here from the beginning so never shopped there much anyway.

So, yes, there are places that there are few choices other than WalMart and people shouldn't be so judgmental about those that do shop there. But all of us should do our utmost to stop WalMart from the predatory behaviors the chain has exhibited since the founder dies and his ill-begotten progeny took over.

[Art_from_Ark]

92. The Walton family has little to do with the day-to-day management

There are no Waltons in Walmart's executive management, and only 2 Waltons among the 14 members of the board of directors.

http://corporate.walmart.com/our-story/leadership/executive-management/

http://corporate.walmart.com/our-story/leadership/board-of-directors/

[Oldenuff]

43. At the end of the day...it's simply added revenue

If Walmart can do this at all the stores,and don't get customers to lodge a complaint,then it is added revenue.Chances are that even if they get caught,there would be no measurable fine, so they will continue to do it if they can get away with it.

[delete_bush]

49. Nothing but an unsubstantiated knee-jerk reaction on your part.

I highly doubt it's added revenue. Are you at all familiar with how state sales tax returns work?

[rhett o rick]

51. If the computer adds the sales tax, that same computer will tell the state. nm

[PoliticAverse]

54. Any sales taxes collected are likely automatically forwarded to the state and or local governments.

[Mosby]

55. its probably a city tax

Many cities are putting taxes on food, usually a couple percent or three.

The state collects the different taxes on behalf of the cities.

Also, if you collect tax that that exceeds the rate you still have to report it, so if the walmart store in question have been collecting tax they shouldn't have, they cannot keep it.

This is unlikely though, since tax has to be reported and paid monthly.

[TorchTheWitch]

61. Check the news on this - Walmart is doing this everywhere

Other stores as well.

http://www.bing.com/videos/watch/video/woman-sues-wal-mart-for-charging-sales-tax-on-full-price-of-discounted-items/1d01pkqjt

http://couponsinthenews.com/2013/07/22/couponer-sues-walmart-for-21-cent-overcharge/

http://www.taxrates.com/blog/2014/01/07/walmart-v-pennsylvania-a-sales-tax-suit/

http://www.foxnews.com/politics/2014/02/16/walmart-stores-in-connecticut-reportedly-charging-illegal-taxes-on-gun-safes/

http://www.kcra.com/news/local-news/news-sacramento/Check-that-receipt-Stores-overcharging-for-sales-tax/19643288

Plenty more links if you do a search.

[bobGandolf]

65. Good for you....

for following through! So many just talk.

[djean111]

69. As a former programmer, I have to laugh at that smug "automatically forwards" stuff.

People write those computer programs. If I wanted to scam the sales tax, I would collect it, and then run a program with access to a table of items sold, by department or whatever, and figure out the correct amount to send to the state, and send that amount, and shunt the incorrectly gathered sales tax somewhere else. Hopefully, the QA people check for this sort of thing, or the state audits everything.

I would bet that filing a complaint is the only way to get this investigated, and that no one at an actual store has any control at all over how money is collected. Most they can do is a manual override or correction, with a manager's password. The money stuff is done at corporate level. Plus, of course, they need to keep their jobs.

As far as not understanding why someone would shop at Walmart - first, and maybe this comes with age, but I have found that it is not necessary for me to always understand what others do. Second, to smugly say that others who are poor should just do without rather than shop there - thanks. Good news is, though, that now I shop at Dollar Tree for things that used to be cheap at Walmart, and I can see first hand that Walmart is more expensive than other stores around here.

[IdaBriggs]

75. Fellow programmer here -- and I had similar thoughts about

The potentially criminal nature of this. I am also married to a finance guy, so if the auditors are NOT catching this, I would be thinking they were encouraged not to see it.....

[In_The_Wind]

72. Let's hope the results from an investigation cost Walmart big bucks in fines.

[1dogleft]

79. Rediculous

no store or company makes there own tax program. Hate Walmart all you want but they know retail sales and what gets taxed and how much

[indie9197]

87. I wonder what percentage of sales tax that we pay goes directly into the pockets of the business.

I know it would be illegal... just sayin

[Cha]

90. Mahalo for following through with this, Malraiders! I never shop at Walmart anymore

so I wouldn't be Ever catching this.

Good on ya, for posting it, too!