Sales Tax Overcharges
13 views
Skip to first unread message
Larimer.org
Oct 28, 2023, 1:58:49 PM10/28/23
to jkef...@larimer.org
A message has been submitted to jkef...@larimer.org from Larimer.org:
Dear Mr. Kefalas,
I have come to realize that large online retailers have been overcharging sales tax to residents outside of city limits. This has happened to me with Amazon, Wayfair, REI, and Aveda. When contacted, I am told that they charge by zip code without regard to specific address. This means that county residents outside of city limits are paying twice the sales tax. REI was able to put a note in my file, but I do not know if they have fixed their software system. When I contacted Amazon and Aveda, I was told that someone would look into it and get back to me, but I have received no further communication after months. Wayfair was charging the correct rate, but now is overcharging. The state website (https://tax.colorado.gov/sales-tax-refund#:~:text=Purchasers%2FConsumers,the%20tax%20paid%20in%20error.) says to request a refund from the vendor, and then if no refund is given to file the Claim for Refund of Tax Paid to Vendors (DR 0137B), with an attached copy of receipt or invoice. Further, the form requests the vendor's FEIN and Sales Tax Account Number. This is not information easily obtained. Next, the claim form requires "An explanation which outlines why the refund was not obtained from the vendor with supporting documentation." If this request was made via phone call, that is a hard requirement to fulfill. This makes it burdensome to claim the overpayments.
There is software readily available to e-Commerce merchants that correctly calculates sales tax rate based on individual address, such as Sovos. There is no reason why these companies, especially the largest online retailer globally, cannot fix this problem. It also seems as though the state could streamline this process for citizens.
I am writing to you to bring attention to this concern, as it does not seem fair to taxpayers. When I have spoken to neighbors, they did not realize this was going on and were also frustrated with the process to claim overpayment from the state.
Thank you for taking the time to consider this matter,
Jana Kraich
I have come to realize that large online retailers have been overcharging sales tax to residents outside of city limits. This has happened to me with Amazon, Wayfair, REI, and Aveda. When contacted, I am told that they charge by zip code without regard to specific address. This means that county residents outside of city limits are paying twice the sales tax. REI was able to put a note in my file, but I do not know if they have fixed their software system. When I contacted Amazon and Aveda, I was told that someone would look into it and get back to me, but I have received no further communication after months. Wayfair was charging the correct rate, but now is overcharging. The state website (https://tax.colorado.gov/sales-tax-refund#:~:text=Purchasers%2FConsumers,the%20tax%20paid%20in%20error.) says to request a refund from the vendor, and then if no refund is given to file the Claim for Refund of Tax Paid to Vendors (DR 0137B), with an attached copy of receipt or invoice. Further, the form requests the vendor's FEIN and Sales Tax Account Number. This is not information easily obtained. Next, the claim form requires "An explanation which outlines why the refund was not obtained from the vendor with supporting documentation." If this request was made via phone call, that is a hard requirement to fulfill. This makes it burdensome to claim the overpayments.
There is software readily available to e-Commerce merchants that correctly calculates sales tax rate based on individual address, such as Sovos. There is no reason why these companies, especially the largest online retailer globally, cannot fix this problem. It also seems as though the state could streamline this process for citizens.
I am writing to you to bring attention to this concern, as it does not seem fair to taxpayers. When I have spoken to neighbors, they did not realize this was going on and were also frustrated with the process to claim overpayment from the state.
Thank you for taking the time to consider this matter,
Jana Kraich
Contact Details
Name: Jana Kraich
Email: kraic...@gmail.com
Phone: 9704052929
The email was submitted on Saturday, October 28, 2023 - 11:58am, logged in as: Anonymous
Reply all
Reply to author
Forward
0 new messages