The Pennsylvania Supreme Court handed down an opinion just a few months ago that represents a major win for businesses. These businesses illegally charged consumers that 6%, 7% around Pittsburgh, or even 8% sales tax around Philadelphia, for things that should not have been taxed. The case is Garcia v. American Eagle Outfitters et al., 331 A.3d 541 (Pa. 2025), and signals a continuing shift of big money winning over ordinary citizens.
The facts are straightforward. During the height of COVID in 2020, Garcia went out and bought cloth face masks from various stores. Those businesses all charged sales tax on the masks that Garcia bought. Since masks are classified “medical supplies” (or “clothing”, I would also argue), they should not have been taxed under 72 P.S. §7204(17). Garcia sued those businesses in a class action lawsuit on behalf of all Pennsylvania consumers, and alleged that the businesses violated Pennsylvania's consumer protection law.
In an admirably lawyerly move, the businesses' learned counsel argued that collecting sales tax was not part of the “conduct” that is “inside the doing” of business. Yes, lawyers are paid well to say that with a straight face.
The facts are straightforward. During the height of COVID in 2020, Garcia went out and bought cloth face masks from various stores. Those businesses all charged sales tax on the masks that Garcia bought. Since masks are classified “medical supplies” (or “clothing”, I would also argue), they should not have been taxed under 72 P.S. §7204(17). Garcia sued those businesses in a class action lawsuit on behalf of all Pennsylvania consumers, and alleged that the businesses violated Pennsylvania's consumer protection law.
In an admirably lawyerly move, the businesses' learned counsel argued that collecting sales tax was not part of the “conduct” that is “inside the doing” of business. Yes, lawyers are paid well to say that with a straight face.
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