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Suit alleges Michaels illegally over charging tax on Missouri residents' remote purchases

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Sunday, December 22, 2024

Suit alleges Michaels illegally over charging tax on Missouri residents' remote purchases

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WILMINGTON, Del. (Legal Newsline) — A woman alleges that Michaels is illegally collecting more tax from Missouri residents on remotely purchased items than allowed by state law. 

Amber Kelly, individually and on behalf of all others similarly situated filed a complaint Feb. 17 in the U.S. District Court for the District of Delaware against Michaels Stores Inc., alleging violation of the Missouri Merchandising Practices Act and other claims. 

Kelly alleges in her class action that Michaels is illegally overcharging on tax rates for purchases made online and through other remote channels to Missouri customers. She claims Michaels is charging a higher tax rate than the correct applicable use tax rates on products purchased through remote sales and shipped to Missouri customers from an out-of-state facility. 

Kelly alleges that on Jan. 4, she purchased 21 short sleeve T-shirts from the Michaels website and paid an 8.603% tax rate when the rate should have been 4.225% per Missouri law. 

Kelly and the class seek monetary relief, interest, trial by jury and all other just relief. They are represented by Dean Roland and Blake Bennett of Cooch and Taylor PA in Wilmington and Yitzchak Kopel of Bursor & Fisher PA in New York.

U.S. District Court for the District of Delaware case number 1:23-CV-00182-GBW

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