Something a lot of people might not know is that you don't have to pay sales tax on certain things in Pennsylvania, like toilet paper.It’s a topic we first told you about in January when a local consumer advocate took Walgreens to court.Because of that story, Pittsburgh's Action News 4 is doing a deeper dive to get you the facts on sales tax. Most people are not aware of what items in Pennsylvania are taxable and what items are not. And if that's you, don't feel bad. because the list is kind of confusing.Take, juice for instance.These four containers below are the same brand and same size, but on two of them, you'll pay sales tax, and on the other two you won't. "If the item has 24% juice or less, it's considered by Pennsylvania to be a taxable item,” Mary Bach told us. “If it has 25% juice or more, it's not taxable."Other common items that you do not have to pay sales tax on include toothpaste, baby diapers and wipes, and bottled water. “If you buy toilet tissue, it is not taxable,” she said.Even though it's not taxable in Pennsylvania, Bach was charged 60 cents for sales tax when she bought toilet paper at a Walgreens in Murrysville.“When I find a mistake and call it to the store's attention, they are then in control and I expect them to fix it,” she said.Bach said Walgreens didn't fix it so that's why she is suing them in district court for $100 under the Unfair Trade Practices and Consumer Protection Law. She said she knows it's just a matter of cents she’s suing over, but it's a matter of principle.“Over the years I've probably had 30 or 35 of these small claims actions for $100," she said. Mark Balistrieri is the director of state and local taxes at Schneider Downs and Co.Sales tax varies from state to state. So, he says big retailers with locations across the country will often use software to determine what will be taxed when you go to scan an item at the store.“The problem is that you have to update the software regularly because rules may change,” Balistrieri said. “We have various reasons. Rules change, court cases, rulings, change of law by the legislatures in those states, and that all has to be maintained. And then the product codes have to be updated as well.”This leaves room for error. Balistrieri said tax audits are performed to make sure retailers are charging things correctly.Balistrieri said retailers though generally don’t get in serious trouble for charging sales tax on items they shouldn't.The company is not you know, is not going to get run afoul of anything with the department for overcharging it," he said. "I think it's an issue to your customers and customer service and so forth to make sure that you're you're only charging them what you should be charging them."All sales tax whether collected rightfully or not has to be submitted to the Department of Revenue.So Balistrieri says if you're charged sales tax on an item that shouldn't be taxed and you want a refund, the consumer goes back to the Department of Revenue through a set standard that you go in and apply for a refund, but it's time-consuming.Next for Mary Bach is a court date on March 1 regarding a separate lawsuit she filed against the Penn Hills Walgreens.We reached out to Walgreens for comment on a few of these lawsuits, but have not heard back.
Something a lot of people might not know is that you don't have to pay sales tax on certain things in Pennsylvania, like toilet paper.
It’s a topic we first told you about in January when a local consumer advocate took Walgreens to court.
Because of that story, Pittsburgh's Action News 4 is doing a deeper dive to get you the facts on sales tax.
Most people are not aware of what items in Pennsylvania are taxable and what items are not. And if that's you, don't feel bad. because the list is kind of confusing.
Take, juice for instance.
These four containers below are the same brand and same size, but on two of them, you'll pay sales tax, and on the other two you won't.
"If the item has 24% juice or less, it's considered by Pennsylvania to be a taxable item,” Mary Bach told us. “If it has 25% juice or more, it's not taxable."
Other common items that you do not have to pay sales tax on include toothpaste, baby diapers and wipes, and bottled water.
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“Over the years I've probably had 30 or 35 of these small claims actions for $100," she said.
Mark Balistrieri is the director of state and local taxes at Schneider Downs and Co.
Sales tax varies from state to state. So, he says big retailers with locations across the country will often use software to determine what will be taxed when you go to scan an item at the store.
“The problem is that you have to update the software regularly because rules may change,” Balistrieri said. “We have various reasons. Rules change, court cases, rulings, change of law by the legislatures in those states, and that all has to be maintained. And then the product codes have to be updated as well.”
This leaves room for error. Balistrieri said tax audits are performed to make sure retailers are charging things correctly.
Balistrieri said retailers though generally don’t get in serious trouble for charging sales tax on items they shouldn't.
The company is not you know, is not going to get run afoul of anything with the department for overcharging it," he said. "I think it's an issue to your customers and customer service and so forth to make sure that you're you're only charging them what you should be charging them."
All sales tax whether collected rightfully or not has to be submitted to the Department of Revenue.
So Balistrieri says if you're charged sales tax on an item that shouldn't be taxed and you want a refund, the consumer goes back to the Department of Revenue through a set standard that you go in and apply for a refund, but it's time-consuming.
Next for Mary Bach is a court date on March 1 regarding a separate lawsuit she filed against the Penn Hills Walgreens.
We reached out to Walgreens for comment on a few of these lawsuits, but have not heard back.
