Walmart, Home Depot & More Face COVID-19 Sales Tax Class Action Lawsuit

Several retailers, including Walmart, Home Depot, Big Lots and Dollar General, have been hit with a class action lawsuit challenging sales tax charged on face mask purchases during the coronavirus pandemic

According to several plaintiffs, Big Lots, Dollar General, Giant Eagle, Jo-Ann’s, Ollie’s Bargain Outlet, Home Depot, Tuesday Morning, Ulta Beauty and Walmart all charge illegal sales tax of 6% to 7% on purchases of face masks. The plaintiffs contend this sales tax violates Pennsylvania COVID-19 regulations.

Since the beginning of the coronavirus pandemic, face masks and other face coverings have been widely used and even required when people are out of the house in public. State authorities have issued mask mandates, and retailers have issued mask requirements for their shoppers.

Due to the essential nature of face masks during the pandemic, Pennsylvania authorities have issued guidance that sales tax cannot be charged on face masks during the emergency declaration. This declaration was issued by Pennsylvania Gov. Tom Wolf in March.

In October, the Pennsylvania Department of Revenue clarified its position, stating “face masks (cloth and disposable) are exempt from Pennsylvania sales tax.”

According to the revenue department, face masks are now considered to be everyday wear/clothing since they are used by consumers almost every day. Therefore, unlike in pre-pandemic days, sales tax cannot be charged on face masks since clothing is not subject to the state’s sales tax, the revenue department states.

Despite this guidance, the defendants have allegedly continued to charge sales tax on protective face masks and have done so since Wolf’s emergency declaration in March.

Each of the plaintiffs detail their experiences in the sales tax class action lawsuit, contending the businesses listed in the complaint wrongfully charged them sales tax of between 6% and 7% on the purchase of protective face masks.

The plaintiffs argue this practice is illegal and has caused financial harm to consumers by forcing them to pay expenses they are not required to cover under Pennsylvania sales tax regulations.

Due to these injuries, the plaintiffs seek $100 per violation and a refund of these sales tax payments.

The plaintiffs seek to represent several Classes of consumers who purchased face masks from the defendants in Pennsylvania since March 6, 2020.

Several businesses in Pennsylvania have faced legal action over similar sales tax allegations.

In October, American Eagle Outfitters, Foot Locker, Kohl’s, J. Crew, The Gap, Hot Topic, Carter’s, Chico’s, Express, Francesca’s, Gabriel Brothers, Genesco, Tapestry, Vera Bradley, Old Navy, Kate Spade and Walgreens were hit with a class action lawsuit from another Pennsylvania consumer.

According to the plaintiff, these retailers unlawfully charged sales tax on purchases of protective face masks.

Were you charged sales tax on the purchase of face masks during the coronavirus pandemic? Let us know in the comment section below.

Plaintiffs and the proposed Class are represented by Kevin W. Tucker and Kevin J. Abramowicz of East End Trial Group LLC, along with Jason M. Leviton and Lauren Godless of Block & Leviton LLP.

The Face Mask Sales Tax Class Action Lawsuit is Christina Duranko, et al. v. Big Lots Inc., et al., Case No. 2:20-cv-02000-JFC, in the Court of Common Pleas of Allegheny County, Pennsylvania.

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