In Hot Water: Charging Sales Tax When Selling Water Bottles and Other Non-taxable Items

By: Sheila Raftery Wiggins

Franchisees of an international coffee chain were sued in New York and New Jersey for charging extra money—in the form of sales—for non-taxable food items such as water bottles and packaged coffee. LESSON: Check your state’s sales tax guide, which may limit taxes on certain food items and drinks. WARNING: Failure to comply could land you in hot water defending against a consumer class action lawsuit or a government investigation. HELP: If you are not in compliance, put together a strategy – include legal counsel to address all civil and criminal issues – to remedy this situation.

Sheila Raftery Wiggins, of the Newark office, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.

© 2009- Duane Morris LLP. Duane Morris is a registered service mark of Duane Morris LLP.

The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

Proudly powered by WordPress