When a grocery item is returned to the store, how much of the product’s purchase price will you receive? What happens to the sales tax originally paid on it? What if a coupon was used to buy it? These are some of the questions my readers have been asking lately, so let’s dive into them:
<strong>Dear Jill:</strong> Until about a year ago, the sales tax of items returned to groceries were refunded along with the purchase prices. Since that time, the sales tax of items I have purchased from two different grocery stores has not been refunded when I returned these items. The sales tax on items I purchase from other stores always is refunded when I return items. Are grocerers required to refund sales tax on returned items? <strong>— James W.</strong>
The answer to this question will differ depending on your state laws. Typically, you should be refunded sales tax when you return an item. However, some state laws do impose time limits on when sales tax can be refunded. Multiple states do not refund sales tax after 90 days post-sale, so if you’re returning something beyond that timeframe, you might lose out on the sales tax.
Additionally, if the local tax rate changed between the time you purchased the item and returned it, you also might see a difference in the tax being refunded.
It’s worth researching your own state’s laws on this topic. If you feel you were due the tax at the time of your return, do ask the store why it was not refunded. It is possible a failure to include tax in the refund could be chalked up to human error, too.
<strong>Dear Jill:</strong> Please tell me if this is correct. I bought a bag of $5.99 cat food with a $1.50 coupon, but I decided to return it after the stray cat I was feeding disappeared.
I took the unopened cat food back, and the store refunded the price of the cat food minus the coupon: $4.49.
I don’t think this is right. The price of the cat food was $5.99. I have returned other items to a different store and gotten the full price returned to me. <strong>— Katherine G.</strong>
When a coupon is involved in the purchase price of the item, you cannot expect to receive the full price of that item returned to you. Some stores will refund the pre-coupon purchase price, but it’s also correct for them to refund the post-coupon purchase price. Why?
In many cases, it’s to reduce fraud. Imagine a scenario where an unethical shopper bought a large quantity of merchandise with high-value coupons — something such as teeth-whitening strips with coupons valued at $5 or more. If a shopper then returned all of these at a store and got the full purchase price back, they would “earn” $5 for every item returned.
Sadly, this is a common form of return fraud. While you or I might not think it’s worth the time, others do — and to prevent it, it’s within the store’s rights to not give the coupon value back to the shopper on a product return.
When this is explained to them, shoppers often point out the store will get reimbursed for the coupon used, as it’s likely been sent on to the clearinghouse. While this is true, the store is also potentially months away from receiving that reimbursement from the manufacturer. Again, whether the store wishes to refund the full purchase price, including the coupon, or refund the post-coupon purchase price, they’re within their rights to do so.
As I’ve said many times, couponing is a privilege, not a right. Stores can determine their own rules, both pertaining to coupons and sales refunds.
Check your store’s coupon and return policies for further clarification on how both coupons and sales tax are handled for returns. You typically will find these on the store’s website. You also might inquire about reading a copy at your store’s customer service counter.