Call 4 Action: Consumers Complaining About Digi-TV Converter Box Coupon Taxes
POSTED: 5:27 pm EDT March 25,
2008
UPDATED: 5:11 pm EDT March 27,
2008
The countdown continues. In less than 11 months, local television stations will begin broadcasting a digital signal only. That means some changes for many of you who don't have cable.Beginning in February 2009, if you watch TV using rabbit ears, you're probably going to have to buy a special converter box, but you might want to double check your receipt as soon as you purchase one.Customers are telling Call 4 Action that at least one major store appears to be overcharging on the sales tax for those converter boxes.
The government is handing out $40 coupons but if you check your receipt, you might be paying taxes on the original amount.The Getlak family, of White Oak, said converting their television to tune in a digital signal ended up costing a little more than they had expected."I knew it wasn't right," said Albert Getlak. "I said, this can't be right."When you ring up at most big retail stores, the register automatically calculates the sales tax. But according to the Getlaks, the registers at the North Versailles Wal-Mart made a big mistake on his tab.And Call 4 Action has heard identical complaints from customers of the Greensburg Wal-Mart.The digital converter boxes cost about $50 at Wal-Mart. The federal government is giving out the $40 coupons, which means the Getlaks paid only $10 for the box. But Wal-Mart taxed them for the entire $50.According to Pennsylvania tax code, you're only required to pay sales tax on the final price, after the discount.The Getlaks, who bought two boxes, ended up paying an extra $5.40 in sales tax. They worry other buyers might be in the same boat."Well, there's a lot of confusion," said Albert Getlak. "I'm sure people don't know the law. A lot of people are confused about sales tax, even when you go to the grocery store."Unable to get a refund at first, the Getlacks contacted Call 4 Action. A Wal-Mart manager eventually agreed to pay them back.Call 4 Action called Wal-Mart's corporate headquarters to see if the company was aware of the possible problem. Officials said they were never told exactly how to calculate the taxes.In the meantime, if you need a $40 converter box coupon, call 888-388-2009.
Follow-Up
As it turns out, even more big retail stores than first thought appear to be overcharging you on sales tax. The problem is related to the special digital converter boxes some of you will soon need to watch older television sets.Since Call 4 Action's story aired, many people have e-mailed and called about the issue. Those of you still using rabbit ears to tune in your stations will probably need one of the converter boxes.The government is handing out $40 coupons, but the problem is at least three big stores appear to be charging you too much sales tax.After ringing up at any store in Pennsylvania, the retailer should charge you sales tax only on the final total after all coupons and discounts are deducted, provided the register can keep track of it all.But earlier this week, Call 4 Action discovered multiple local Wal-Mart stores are not following that rule when you purchase the converter boxes that allow your older TV to tune in a digital signal.Customers who used the $40 government coupons are being charged sales tax on the full amount, which adds up to an extra $2.80 per box.But it's not just Wal-Mart."I knew the tax was wrong, because I had seen your broadcast only the day before," said consumer Linda Bredi.When Bredi bought two boxes at Radio Shack, she too was overcharged on sales tax.Call 4 Action also received identical complaints from Best Buy customers.Radio Shack told Call 4 Action there is confusion statewide over how to tax the converter boxes.The state Department of Revenue did not issue a notice to all businesses, though it said few ever bothered to check with it.Radio Shack said it's correcting the problem and by the end of next week, all overcharged customers can return to the store for a refund.There is still no word on what Wal-Mart or Best Buy wants their customers to do.To fill out a refund form with the state Department of Revenue, call 717-787-1064 or visit www.Revenue.State.Pa.Us.
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Follow-Up
As it turns out, even more big retail stores than first thought appear to be overcharging you on sales tax. The problem is related to the special digital converter boxes some of you will soon need to watch older television sets.Since Call 4 Action's story aired, many people have e-mailed and called about the issue. Those of you still using rabbit ears to tune in your stations will probably need one of the converter boxes.The government is handing out $40 coupons, but the problem is at least three big stores appear to be charging you too much sales tax.After ringing up at any store in Pennsylvania, the retailer should charge you sales tax only on the final total after all coupons and discounts are deducted, provided the register can keep track of it all.But earlier this week, Call 4 Action discovered multiple local Wal-Mart stores are not following that rule when you purchase the converter boxes that allow your older TV to tune in a digital signal.Customers who used the $40 government coupons are being charged sales tax on the full amount, which adds up to an extra $2.80 per box.But it's not just Wal-Mart."I knew the tax was wrong, because I had seen your broadcast only the day before," said consumer Linda Bredi.When Bredi bought two boxes at Radio Shack, she too was overcharged on sales tax.Call 4 Action also received identical complaints from Best Buy customers.Radio Shack told Call 4 Action there is confusion statewide over how to tax the converter boxes.The state Department of Revenue did not issue a notice to all businesses, though it said few ever bothered to check with it.Radio Shack said it's correcting the problem and by the end of next week, all overcharged customers can return to the store for a refund.There is still no word on what Wal-Mart or Best Buy wants their customers to do.To fill out a refund form with the state Department of Revenue, call 717-787-1064 or visit www.Revenue.State.Pa.Us.
Related Links:
More County NewsGet RSS | E-Mail Alerts
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