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I don't know if other people have noticed this but on two ocasions recently I have been charged the wrong sales tax when buying reduced bakery items at Harris Teeter. They charge sales tax at the original price and incorrectly don't apply the discount on the reduced price for sales tax so consequently the sales tax is around 12% instead of 6.75%.
OK so the amount is small but the issue to me is that I spoke to the Manager at the High House / 55 store and also the corporate office who tried to blame the store for the error when it is obviously a software error on the computer system supporting the checkout tills. They never bothered to call back so I think it appropriate to share not only the incorrect tax computation but also the shabby customer relations in this regard - shame on you Harris Teeter
Now for all you people reading wondering how on earth can you tell if the sales tax is wrong it was because when getting the groceries I forgot the bread and had to go back to get it and was paying for just the one item and commented on how high the sales tax seemed. A quick bit of mental arithmetic told me that 15 cents sales tax on something costing $1.29 had to be wrong. The manager was very helpful but had no explanation which she said she would take up with the corporate office - and of course they were going to blame the store and then never returned the subsequent follow up call.
just to prove a point I went and purchased another reduced bakery item in the Cary Town Center store today and guess what? yes the checkout was working on the same computation methodology as the High House store and overcharged the sales tax - charging 16 cents instead of 9 cents
perhaps this is the Harris Teeter contribution to resolving the NC Budget deficit but the big issue is how many other errors are they making when charging sales tax? and how much are we overpaying for our groceries as a consequence?
I'm not sure how it works in NC but in VA you would owe sales tax on the price *before* any store coupons. Assuming Harris Teeter is counting that peel-off sticker as a store coupon (it looks like one to me) and NC is the same as VA, you'd owe the sales tax on the higher amount.
edit: Here you go - http://www.streamlinedsalestax.org/issue_papers/Coupons%20Rebates.pdf (broken link).
In NC, store coupons do not reduce the tax base for sales tax, but manufacturer coupons do.
(yes, I'm an accountant and some days I know way more about sales & use tax than I really want to!)
I'm not sure how it works in NC but in VA you would owe sales tax on the price *before* any store coupons. Assuming Harris Teeter is counting that peel-off sticker as a store coupon (it looks like one to me) and NC is the same as VA, you'd owe the sales tax on the higher amount.
edit: Here you go - http://www.streamlinedsalestax.org/issue_papers/Coupons%20Rebates.pdf (broken link).
In NC, store coupons do not reduce the tax base for sales tax, but manufacturer coupons do.
(yes, I'm an accountant and some days I know way more about sales & use tax than I really want to!)
Thanks for the input, but having read the NC Administrative Code it states that the net price paid is the amount on which Sales Tax is due - so any other opinions greatly received as you could write what I know about sales tax on a pin head having said that we are not talking about Coupons in this situation but a price reduction in order to sell quickly produce before the sell by date - even HT accept that the Sales Tax wasn't due.
17 NCAC 07B .0122 COUPONS
(a) Sales of coupons and coupon booklets to advertising agencies, promoters and other users or consumers for use in advertising programs aimed at the promotion of sales by retail merchants are subject to sales or use tax. When coupons issued pursuant to such programs are subsequently taken by retail merchants from their customers in connection with sales of their products, the retail merchant shall charge and remit sales tax on the net amount charged for the products after deduction of any credit by reason of the coupons. Such coupons are considered to be for the purpose of advertising discounts or special sales prices, such as the sale of two items for the price of one item, and are not considered to be a part of the sales price upon which the sales tax is due.
(b) When retailers issue coupons relating to products they sell and later receive the coupons from customers in connection with sales of their products, the retailer shall charge and remit sales tax on the net amount charged for the products after deduction of any credit by reason of the coupons. Coupons issued by retailers are considered to be for the purpose of advertising discounts or reductions in the suggested sales price of products and are not considered to be a part of the sales price upon which sales tax is due.
Maybe I have it backwards, who knows? Sales tax gives me a headache, and I don't deal with coupons in the returns I file. If you want to pursue it further, I'd suggest calling the NC Dept of Taxation. They are really the only ones who can do anything anyhow.
(Oh and I think Paragraph B applies to this situation, not Paragraph A.)
In NC, store coupons do not reduce the tax base for sales tax, but manufacturer coupons do.
Correcting myself here - I do have it backwards. You pay sales tax on the price of items before manufacturer coupons, but after retailer coupons. If I had to guess, HT has the bakery discount coupons coded as manufacturer coupons in their system. This is just a guess, as I said I'm no expert on the sales tax treatment of coupons.
At my old restaurant we offered a crab dip that was very popular with people all over town. It was a fairly large portion and was listed on the menu as "Crab Dip for Two". It was average in cost in my opinion at $10.99.
There was a customer that came in regularly that everyone dreaded seeing. He worked for the University and was a numbers geek. He would sit down order water and ask the server "I would like a crab dip but I only want it for one and would like it priced accordingly". It became quite comical and we all would laugh at the unfortuante server stuck explaining that this was not possible. He would change it up sometimes and ask for a lunch entree during dinner. Dinner entrees were served with a complimentary salad, and he would refuse the salad and ask that the price of the salad be deducted from the cost of the entree.
I am not making light of Beermat's post. I am in fact glad that he took note and tried to correct a wrong...but when I read it all I could think about was an image of this old customer. I started laughing out loud. It is funny what can spark such a vivid memory and for that alone I thank you Beermat.
Correcting myself here - I do have it backwards. You pay sales tax on the price of items before manufacturer coupons, but after retailer coupons. If I had to guess, HT has the bakery discount coupons coded as manufacturer coupons in their system. This is just a guess, as I said I'm no expert on the sales tax treatment of coupons.
Could be just semantics, but if this is a bakery item "manufactured" in-house by Harris Teeter, and the bakery offers the "coupon discount", maybe they are considering the bakery as the manufacturer and thus the discount is being treated as a manufacturer coupon?
Just a thought, but I think I just confused myself!
I just want to be the first to say, it is astounding that the HOAs let them get away with it in Cary.
And it seems like a little simplification may be in order.
LoL I am sure that there are no mistakes ever at Charlton Dudes local Harris Teeter maybe I should go to there
but my main issue is one of disapointment of the lack of communication by Harris Teeter over what is most probably a significant sum of money when 1000's of transactions are taken together
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but the big issue is how many other errors are they making when charging sales tax? and how much are we overpaying for our groceries as a consequence?
having said that we are not talking about Coupons in this situation but a price reduction in order to sell quickly produce before the sell by date - even HT accept that the Sales Tax wasn't due.
It became quite comical and we all would laugh at the unfortuante server stuck explaining that this was not possible. He would change it up sometimes and ask for a lunch entree during dinner. Dinner entrees were served with a complimentary salad, and he would refuse the salad and ask that the price of the salad be deducted from the cost of the entree. 
maybe I should go to there
