SEATTLE — The simplicity of grabbing a bottled coffee drink may mask underlying issues, particularly regarding the cost at the register. As consumers navigate today’s pricing landscape, something as small as a sales tax mischarge can feel significant.
Sales Tax Confusion on Bottled Coffees
When Juliana Miura purchases bottled coffee beverages, she seldom scrutinizes her receipt.
“Every time I fill my gas, I buy one,” she remarked with a smile outside a Renton ampm convenience store.
However, a KIRO 7 investigation revealed that depending on the retailer, popular bottled coffee drinks — such as Starbucks Frappuccinos — may be subjected to incorrect sales tax charges.
This issue is emerging at convenience stores across Washington, from North Sound to South Sound. While some establishments correctly applied no tax on bottled or canned coffee drinks, others added approximately 50 cents in tax for the same product.
The Washington State Department of Revenue has confirmed that these tax charges are erroneous.
Investigation Findings
This matter was initially highlighted by Action 9, a KIRO 7 sister station in Orlando, prompting KIRO 7 to verify if similar inconsistencies were present in Washington State.
We randomly assessed four convenience stores in Seattle, Bellevue, Renton, and Auburn, purchasing identical bottled coffee drinks.
In our findings, two stores charged sales tax, while two did not.
For instance, at a Chevron in Bellevue, the tax added 45 cents, whereas another nearby location did not impose any tax on the same beverage.
“That’s pretty wild,” commented Jose Perez Peralta of Renton. “I don’t think we should be paying extra.”
Official Responses
To validate the tax discrepancies, KIRO 7 brought the receipts directly to the Washington State Department of Revenue.
“Beverages containing milk are exempt from sales tax,” explained Quinn Dickason, education coordinator in the Taxpayer Services Division with the Washington Department of Revenue.
Upon reviewing several receipts, Dickason confirmed that the tax charges were indeed incorrect.
“I would say that’s incorrect,” she stated.
The rationale is straightforward: in Washington State, grocery food is not taxed. While soft drinks like soda are subject to tax, beverages with at least 50% juice or any milk are exempt.
Consequently, bottled coffee drinks that contain milk should remain tax-free.
Customer Reactions
For consumers already navigating an expensive market, even minor charges can accumulate.
“Everything’s super expensive,” remarked Fabricio Miura, an ampm customer. “We’re always working, trying to do our best. Even if it’s only 50 cents, we shouldn’t be paying that.”
To investigate the issue further, KIRO 7 surveyed additional stores and quickly discerned a trend.
Every ampm convenience store visited in Everett, Renton, Auburn, Tacoma, and Lacey imposed sales tax on the same bottled coffee drinks.
A store manager in Auburn stated that the sale tax policy is determined by corporate guidelines.
Data from ScrapeHero indicates there are 127 ampm locations across Washington state. Collectively, at an additional 50 cents in tax per drink, this may result in substantial amounts generated from customers statewide.
“We pay without knowing,” Fabricio Miura expressed. “We didn’t check the receipts.”
His wife, Juliana Miura, mentioned she purchases these drinks weekly.
Assuming this remains consistent, customers could be inadvertently paying approximately $25 a year in sales tax on exempt drinks.
Corporate Response
KIRO 7 made multiple attempts to contact ampm corporate via calls, emails, social media, and by filing a consumer complaint. After about two weeks, the corporate owner of ampm – BP – provided a response.
“Thank you for bringing this to our attention. We take compliance with local, state, and federal laws very seriously and are reviewing the issue,” said Paul Takahashi, Head of U.S. Media Affairs with BP.
Regarding oversight, the Department of Revenue clarified that it does not conduct routine audits for food tax accuracy, but it would assess tax practices during a broader audit of a store.
Despite KIRO 7’s findings, the Department of Revenue stated that incidents like this are rare.
“I think you got lucky,” Dickason mentioned. “Generally, people get it right… I don’t believe there is any malicious intent. It’s likely just human error,” she concluded.
Conclusion and Next Steps
Some customers, however, remain doubtful.
“I think it’s a little naive to think it’s a mistake,” Miura remarked. “But hopefully, it’s a mistake.”
In terms of obtaining refunds, the Department of Revenue advises consumers to first approach the store directly. If unsuccessful, individuals can seek a refund through the department’s website, although a receipt is necessary.
KIRO 7 will continue to urge ampm to rectify this issue and will update this story should there be changes in their sales tax practices.
Key Takeaways
- Sales tax on bottled coffee drinks varies by store in Washington State.
- Some customers are overcharged due to incorrect tax application.
- Beverages containing milk are generally exempt from sales tax.
- Consumers can seek refunds from retailers or the Department of Revenue.
- KIRO 7 is following up with ampm regarding tax compliance issues.
FAQ
Why are some bottled coffee drinks taxed while others are not?
Tax charges on bottled coffee drinks can differ based on the retailer’s understanding of state tax regulations.
What should I do if I believe I’ve been overcharged?
It’s advisable to first approach the store for clarification and potential refunds; if that fails, you can contact the Department of Revenue.
How can I confirm whether a drink is exempt from sales tax?
In Washington State, drinks containing milk or at least 50% juice are typically exempt from sales tax.
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