BJ’s Wholesale Class Action Over Sales Tax Can Proceed

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A Florida judge has ruled that BJ’s Wholesale Club must face a putative class action lawsuit alleging the membership-only warehouse club chain illegally overcharges Florida customers on sales tax for its discounted merchandise.

Earlier this week, Miami-Dade Circuit Court Judge John W. Thornton gave the green light for the amended complaint to proceed to discovery.

BJ’s is a discount retail chain operating in 15 states with 31 stores in the state of Florida, including in Miami-Dade County, serving many thousands of customer “members.”

Plaintiff Laura Bugliaro brought the class action lawsuit against BJ’s in March 2015 after she purchased a television from a BJ’s location in Florida for a “discounted sales price” of $769.99 (the original price of the television was $1,399.99).

Bugliaro contends she was wrongly charged sales tax based on the full $1,399.99 price of the television because the reduced price was not the result of a manufacturer’s coupon or discount, essentially resulting in an additional $37.80 being collected by BJ’s based on Florida’s 6% state sales tax rate.

The plaintiff further claims that she bought another television at a different BJ’s location in November 2014, for a discounted sale price. Again, Bugliaro alleges that sales tax was collected on the full price, not the discounted price of the television. In this instance, the television was discounted by $200, meaning an extra $12 was collected by BJ’s.

Based on these two incidents, Bugliaro alleges that BJ’s collects sales tax on the full price of “sale” items, instead of applying the discount and then collecting sales tax on the discounted amount.

She claims that BJ’s practices are contrary to regulations promulgated by Florida Administrative Code that mandates a retailer offering a discount may only tax the discounted price.

Bugliaro alleges it’s a “regular practice” for BJ’s to improperly collect sales tax on discounted items at its Florida stores, and believes there could be tens of thousands of affected BJ’s club members who were improperly overcharged as a result of BJ’s collection of state sales tax.

The complaint further alleges violations of Florida’s Deceptive and Unfair Trade Practices Act, fraudulent misrepresentation, negligent misrepresentation, and unjust enrichment.

Bugliaro’s case is not the first time BJ’s has faced complaints regarding its sales tax practices.

In 2013, two Pennsylvania shoppers sued BJ’s in Philadelphia County Court after allegedly overpaying sales tax on items they bought with coupons. That case is on hold while the customers petition the state Department of Revenue.

“BJ’s practice of improperly charging sales tax on the undiscounted purchase price of products subject to discounts not only occurred at the two BJ’s stores … [but] all of [its] Florida stores,” the complaint said. “Accordingly, the prospective class consists of many thousands, if not tens of thousands, of BJ’s members who were improperly charged under the guise of BJ’s collection of state sales tax.”

Bugliaro is represented by Alan J. Kluger and Steve I. Silverman of Kluger Kaplan Silverman Katzen & Levine PL.

The BJ’s Wholesale Sales Tax Class Action Lawsuit is Bugliaro v. BJ’s Wholesale Club Inc., Case No. 2015-006256, in the Eleventh Judicial Circuit Court of Florida.

UPDATE: On May 25, 2017, a plaintiff Class can now seek injunctive relief against BJ’s Wholesale Club for alleged tax law violations, following a judge’s grant of certification.