ST. LOUIS (Legal Newsline) - Michaels Stores faces a class action lawsuit that says it charges the wrong tax on some sales.
Abraham Lizama filed a complaint on Aug. 10 in the Circuit Court of the County of St. Louis against Michaels Stores for violation of the Missouri Merchandising Practices Act, unjust enrichment and negligence.
According to the complaint, Missouri state law mandates that retailers with charge a use tax on sales of their products through remote means to Missouri purchasers that are shipped from an out-of-state facility. The state use tax rate for these sales is 4.225%.
There are also additional local use taxes that are imposed on sales made through remote sales channels based on the delivery address of the Missouri purchasers. Lizama alleges Michaels illegally and erroneously overcharges “tax” monies at a higher tax rate than the correct applicable use tax rate on products purchased through remote sales channels.
Lizama says he was overcharged on the purchase of two LEGO Technic Jam Grave Digger Sets and two 12.6” Gray Willow Planter with Legs by Ashland. The shipment was delivered to Missouri, but shipped from Texas, requiring Lizama to pay an 8.748% tax rate, resulting in the overcollection of monies, he alleges.
Lizama seeks compensatory damages, including the return of the full amount of excessive taxes paid, restitution, pre and post judgement interest, attorneys fees and cost of suit. Lizama is represented by Daniel J. Orlowsky of Orlowsky Law, LLC.
Michaels has removed the case to St. Louis federal court.