Gamestop.com Charging Extra Tax?

MuzykMann

MuzykMann

CAGiversary!
Feedback
9 (100%)
Hey All,

I placed an order with Gamestop.com today and noticed something that irks me. Wondering if you all get the same results. I ordered a $19.99 game and the totals came out like this:

Subtotal - $19.99
Handling - $2.99
Tax - $1.38
-----------------
Total - $24.36

I'm in Maryland. Sales tax here is 6%. You'll notice that, to get to $1.38 tax, Gamestop is actually collecting tax on the handling charge [(19.99+2.99)*.06 = 1.38].

I know, from past experience at my job, that Maryland law allows for tax to be charged on any "handling" fees, while tax is NOT charged on any "shipping" fees. It's all semantics. Basically, because Gamestop.com chooses to call it's fee a "handling" fee instead of a "shipping" fee, they get to charge their customers additional tax.

It's a silly law, but it's even sillier for Gamestop to charge its customers more than they have to. If they'd just change what they call the fee, they could save us money. Not a lot, sure, but collectively the 20 cents here and 60 cents there are gonna add up.

What I can't tell is whether the fee or the way they calculate tax changes based on residence. As I said, I'm in MD. Anyone else have an order on Gamestop.com they can check? Do the math, see if they're charging tax on their shipping fees, and see what they call the shipping fees.

Very curious as to why Gamestop would collect more tax than necessary from their customers. Thanks in advance for contributing to my little investigation.

-M
 
[quote name='MuzykMann']I know, from past experience at my job, that Maryland law allows for tax to be charged on any "handling" fees, while tax is NOT charged on any "shipping" fees. It's all semantics. Basically, because Gamestop.com chooses to call it's fee a "handling" fee instead of a "shipping" fee, they get to charge their customers additional tax.[/QUOTE]

So there you go.
 
I've noticed a lot of places do this.

For example, Walmart.com used to charge me sales tax based on the subtotal after shipping. Granted, it was normally only about 15 cents or so difference, but it's more a principle.

However, my last 2 orders from them have not been charged sales tax on the shipping charges. At least I don't think so. I KNOW the one I placed yesterday with Walmart.com didn't.

As for GameStop.com, I've never noticed that. They might have done it a few times, I dunno.
 
[quote name='Survivalism']So there you go.[/QUOTE]

I guess my point isn't trying to figure out why it's technically legal (assuming they're properly reporting the unnecessary taxes collected), but why they would do such a thing. They are needlessly charging their customers more than is necessary, and I don't get the business strategy behind the decision nor the benefit.

I'm wondering if everyone is charged this additional tax or if it changes based on state. If someone can confirm that some states aren't charged tax on shipping, it would mean that the site could be changed and all purchasers from MD could save a dollar or two on every gamestop.com order.
 
[quote name='Altanis']Walmart.com used to charge me sales tax based on the subtotal after shipping. Granted, it was normally only about 15 cents or so difference, but it's more a principle.
[/QUOTE]

Thanks for that. I didn't realize other businesses would do this too. I figure it's probably just an ease of programming thing. Easier to code one blanket tax rule than try and save some states a few bucks here and there. Still, as you say, the principle of charging customers extra because their programmers don't want to put in a few extra hours doesn't sit well with me.

Also, in case anyone knows their state's tax law and is interested, I called customer service to politely ask if it was a conscious business decision. The guy didn't have any solid answer (expected) but was kind enough to offer to credit me a buck or two back on my order. It's not much, but it did make me feel better knowing they weren't trying to weasel any extra cash out of my wallet. Obviously, this is NOT something to spam, and YMMV, but if it bothers you like it did me, it may be worth an ask.
 
[quote name='MuzykMann']Thanks for that. I didn't realize other businesses would do this too. I figure it's probably just an ease of programming thing. Easier to code one blanket tax rule than try and save some states a few bucks here and there.
[/QUOTE]

The extra programming involved would be very easy to do if it was based on a state by state basis (bit longer but still easy for country basis). The big thing however is it that it would be illegal for them to charge you taxes on it if there was no real tax to begin with. (I believe AT&T was recently sued or charging incorrect taxes to their customers and was forced to issue a credit)
 
Paying tax on a used item always made no sense to me, the tax due on the item was paid to the state, why do they get to get another dip because a pawn shop bought it from someone 2nd hand and then wants to sell it? Then, when you trade a game in, you get store credit, which you can use to buy in-store on anything. And that credit comes off prices before tax is applied. Go Figure.
 
You must log in or register to reply here.
bread's done
Back
Top