
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, December 29, 1993                   TAG: 9312290250
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

TOYS 'R' US SUED IN 7-CENT OVERCHARGE

A $5 million class-action lawsuit brought against Toys 'R' Us by a Florida resident claims the retailer improperly collected sales tax on items it offers at a discount through its own coupons.

Toys 'R' Us says the suit is without merit.

Philip Jester said he was wrongfully charged his state's 7 percent sales tax on a $1 Toys 'R' Us coupon. As a result, he believes he was overcharged 7 cents for the bag of diapers at the store in Clearwater, Fla.

Retailers issuing their own coupons should not collect sales tax on the coupon because it is considered a legitimate discount, according to Florida tax officials.

But tax laws in Florida require a retailer to collect sales tax for the full cost of an item when a consumer presents a manufacturer's coupon, because manufacturers reimburse the merchants. - Newsday

by CNB