Class Action Over 30 Cents in Taxes

ST. LOUIS (CN) - The Home Depot overcharges taxes for coupon-using customers, a class action claims in City Court.

Sandra Barber says Missouri law allows businesses to tax only the sale price paid by the final purchaser, and does not apply to any discounts negotiated between manufacturers, retailers and wholesalers.

Barber claims that she twice bought four Mr. Clean Magic Erasers for $1 each. Each time she had four coupons for $1 off, bringing her total purchase price to zero, but she was charged 30 cents in taxes both times.

"Coupon sales qualify as 'pricing discounts,'" her complaint states. "Sales tax should not be collected by retailers for the amount discounted by the coupon and not paid by the purchaser.

"Home Depot collects sales tax on retail sales that involve coupons, imposing a sales tax against the full retail price of the item purchased, even when the price paid by the final purchaser may be substantially less than the full retail price."

The class consists of all people who bought items at a Home Depot in Missouri since Aug. 28, 2007, who used a coupon or other discounts, but were charged tax on the item's full purchase amount.

Barber seeks an injunction, disgorgement and damages. She is represented by Jeffrey Lowe with Carey Danis & Lowe.

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