First Lite Sales Tax Issue

[jodorouse]

Hey Everyone,

First time poster here. I wanted to let everyone know (especially folks from Minnesota) that First Lite charged me sales tax on clothing. In Minnesota, clothing is a tax exempt item so I should not have been taxed. I contacted First Lite and they said they will credit me the amount on that order but didn’t sound like they were going to go though my other orders. I plan on going back through all my orders and itemizing then sending them to FL.

Considering how much I bought from them over the last couple years I could be looking at another couple pieces in the kit with the credit!

Josh

 

[Bärenjäger]

Nice catch! You'll probably have a hard time getting credit for anything bought prior to current fiscal year. Worth a shot though. Post if it works.

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[hoyt-guy]

Man I'm from MN, and I have bought a lot of FL clothing. I never even thought about the sales tax on the clothes

 

[Xxtavixx]

Pretty sure the sales tax exemption is only based on where the products are bought, not where they are shipped to. Idaho does not give an exemption unless its for the poor

 

[Poser]

Pretty sure the sales tax exemption is only based on where the products are bought, not where they are shipped to. Idaho does not give an exemption unless its for the poor

Actually, ID is a “destination ” state where the sales tax is based on where the product is shipped to. Some other states are “origin” taxes states where you pay that state’s sales tax. Whatever e-commerce platform FL uses should calibrate this appropriately. My guess is that the platform doesn’t exempt clothing and that it’s not ill-intent on FL’s behalf. I had no idea clothes were tax exempt in MN, for example. I’d venture that maybe only Amazon level e-commerce is calibrating and exempting that.

 

[jodorouse]

For what it’s worth, I submitted my request for a credit from FL this morning and already received it today so big thumbs up to FL customer service for a quick response.


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[Xxtavixx]

Actually, ID is a “destination ” state where the sales tax is based on where the product is shipped to. Some other states are “origin” taxes states where you pay that state’s sales tax. Whatever e-commerce platform FL uses should calibrate this appropriately. My guess is that the platform doesn’t exempt clothing and that it’s not ill-intent on FL’s behalf. I had no idea clothes were tax exempt in MN, for example. I’d venture that maybe only Amazon level e-commerce is calibrating and exempting that.

good to know! Thanks for the information

 

[jodorouse]

Another update, they set my account up to not get taxed since I am in MN. Apparently they have that option in the system.


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[Scottyboy]

Yikes, I’d hate to see what I’ve been taxed so far this year, guess I need to get all my orders in line and make a call. Nice catch btw

 

[jodorouse]

Yikes, I’d hate to see what I’ve been taxed so far this year, guess I need to get all my orders in line and make a call. Nice catch btw

I went back and looked at some purchases last year and they didn’t charge tax (circa dec/jan). It was only two purchases I made this Aug.


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[tdhanses]

Just placed an order and now they aren’t charging tax in KS, lol.

 

[Where's Bruce?]

Man I'm from MN, and I have bought a lot of FL clothing. I never even thought about the sales tax on the clothes

Unless of course you paid with a charge card then you file a chargeback request stating you just found evidence of fraudulent charges. Your card issuer will immediately refund your card the difference.

 

[jodorouse]

Their accountant is going to have fun losing the books.


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[Erict]

No vendor "charges" sales tax - they collect it on behalf of the state(s). That said, sounds like whatever software they were using may have erred and y'all worked it out.

 

[Dos Perros]

Interesting perspective @AmeliaRobertson bot.