Sam’s Club Class Action Says Retailer Overcharges Sales Tax

Sam’s Club may make misleading representations about their sales tax, according to a recent class action lawsuit removed to Maryland federal court.

Plaintiff Robert Van Buren argues that Sam’s Club “intentionally or negligently misrepresent[s]” the sale prices of their products due to the “excess” sales tax the company collects from their customers.

Sales tax percentage is typically determined on a state or local basis.

Van Buren claims that sales tax should be calculated based on the purchase price of the item. If an item is on sale or discounted in any way, he argues that this reduced price should be the amount used to calculate sales tax.

Instead of following these guidelines, the Sam’s Club class action states that the wholesale retailer charges sales tax based on the item’s regular price. This means that, regardless of the actual price paid by the consumer, the Sam’s Club reportedly charges increased sales tax.

Van Buren allegedly experienced this sales tax overcharge in July 2018. He says he purchased a Sonicare product on sale for $31.98, an $8 discount from the item’s regular $39.98 price. However, Van Buren was allegedly overcharged sales tax.

The sales tax percentage in Maryland is six percent. He argues that, based on a price of $31.98, his sales tax should have been $2.29. Instead of this amount, he was allegedly charged $2.77. Van Buren argues that this overcharge.

The Sam’s Club class action claims Van Buren experienced this issue during other visits, including trips to Sam’s Club in August, September, and October.

The Sam’s Club sales tax class action claims that Walmart uniformly overcharges their customers on sales tax, resulting in financial damage to consumers who are unknowingly paying too much.

“Walmart represented an amount for the sale price that was less than the actual amount paid because Walmart added an amount to the sales tax sales charge in excess of the sales taxes due in connection with the purchase,” Van Buren claims in his Sam’s Club class action. “Walmart calculated the sales tax amount based on the regular price not the sale price.”

“As a result, the Plaintiff and Class Members paid more than the sale price than what Walmart represented the sale price of the item to be.”

Van Buren seeks to represent a Class of consumers who, within the last three years, purchased an item from Sam’s Club/Walmart that was represented as on sale, but paid sales tax calculated based on the regular price and did not receive a refund.

The Walmart class action accuses the massive retail corporation of negligent misrepresentation and fraud. The complaint seeks compensatory damages exceeding $75,000, punitive damages exceeding $75,000, court costs, and attorneys’ fees.

Van Buren and the proposed Class are represented by Peter A. Holland and Emanwel J. Turnbull of The Holland Law Firm PC; Robert Persante and Darren M. Stotts of PersanteZuroweste, and Scott C. Borison of Legg Law Firm LLP.

The Sam’s Club Sales Tax Class Action Lawsuit is Van Buren v. Walmart Inc. t/a Sam’s Club, Case No. 1:19-cv-00911, in the U.S. District Court of Maryland.

Read More Lawsuit & Settlement News:

Head and Neck Cancers Among 9/11 Cancer Types on the Rise

Smucker’s Must Face Crisco 100% Oil Cooking Spray Class Action