How do you dispute illegal tax charges? - Credit Card Forum

Multi-Purpose · 05-15-2008, 04:20 PM

In California, Subway is not supposed to charge tax on sandwiches you get to go. Only if you eat there do you pay tax. I've talked to managers and everything about this.

Some of the locations illegal just enter every order as "Dine In" on the register so you get charged tax. That extra 8 1/2% adds up over time. How do you go about disputing this or reporting it? I'm really sick of them nickle and diming everyone illegally like that. If I made a complaint wouldn't they reverse all the charges? I don't want that, just the tax reversed but most importantly to teach them a lesson to stop doing it to customers.

1bootcamp · 05-29-2008, 12:30 PM

I once had to do that for something else. With my credit card though you couldn't reverse just part of the charge, they had to reverse the whole charge. So they reversed the entire charge. Not sure what the best way to go about that is. I guess call up your credit card company's customer service and see what they advise to do. Maybe if they do reverse the entire charges, it may be a good thing in the sense that will really get Subway's attention more than just reversing 8%.

magyar1045 · 05-30-2008, 02:40 PM

Quote:

Originally Posted by Multi-Purpose

In California, Subway is not supposed to charge tax on sandwiches you get to go. Only if you eat there do you pay tax. I've talked to managers and everything about this.

Some of the locations illegal just enter every order as "Dine In" on the register so you get charged tax. That extra 8 1/2% adds up over time. How do you go about disputing this or reporting it? I'm really sick of them nickle and diming everyone illegally like that. If I made a complaint wouldn't they reverse all the charges? I don't want that, just the tax reversed but most importantly to teach them a lesson to stop doing it to customers.

Forget about disputing this. Report them to the state dept. that oversees taxation. I think it's the Board of Equalization, and not the Franchise Tax Board.
8 1/2 % sales tax? Where is that? Here in Sacramento it's 7 3/4.

Multi-Purpose · 05-30-2008, 07:25 PM

Sorry I meant to say 8.25%. I'm in Los Angeles. It's only 7 3/4 in Sacramento? I guess only isn't the right word because that's still a lot higher than most of the country. Anyway good idea I will report that. When you think about it Subway's profit margin is probably only 5% or 10% anyway. By charging an illegal 8.25% on every dollar that's like doubling their profit margin. I'll look into reporting them this weekend. Thanks for the tip.

Mogul of Pineapples · 09-01-2008, 12:47 PM

I had this problem come up twice this weekend alone. The first time was at a Subway, which was previously mentioned on here, and the other was at a Chevron in Orange County.

Subway charged sales tax on a to-go order for a cold sub - illegal in CA. 90% of Subways cooperate with this law. But once in a while you come across these scandalous ones owned by someone who's trying to make an extra buck at the expense of us.

Chevron charged sales tax on a 20 oz bottle of Coke. I did not make a mistake and assume the CRV was the tax. They charged both CRV and a seperate charge for sales tax. The foreigner at the register gave me attitude and basically told me to get lost and he didn't care.

I haven't done anything against the cash station yet, but like we already discussed the Subway thing on here, I called up American Express and did a fraudulent charge for the sub. I told them exactly why and said I only want to dispute this charge if they do a chargeback, not if Amex just refunds the money out of Amex's pocket. The reason this is important is now most transactions under $25 fall under different rules where the credit card companies voluntarily coughs up the money automatically to pay for the charge instead of doing the formal chargeback process. I did not want this since Amex didn't do anything so that was important to me because the whole point of doing it was to show the owner of that Subway that his scamming won't be accepted. A lot of people eat at Subway because their prices are less than the grocery store. Conning these low and middle income people out of an extra 8.25% is wrong.

1bootcamp · 09-04-2008, 07:50 PM

Quote:

Originally Posted by Multi-Purpose

I'll look into reporting them this weekend. Thanks for the tip.

Did you ever report this BS? That charge I reversed stayed. If they tried arguing back they must have not been successful. All of us should really be reporting this kind of thing to the IRS or state tax boards because they are the ones that will really shake some sense into them.

Mogul of Pineapples · 09-16-2008, 01:53 PM

Thought I'd share the letter I got back from American Express for the illegal taxes Subway charged me too.

Mogul of Pineapples · 09-16-2008, 02:02 PM

SUBWAY: DID THIS TEACH YOU NOT TO SCAM PEOPLE?

Look at the dates on the letters, Amex didn't screw around they resolved this in two days!

I've gone back to the Subway twice and no more illegal taxes charged. Happy I was able to stop them because I know a lot of people depend on Subway to get by (they take EBT/Food Stamps in CA) so they do NOT need to be screwing those people over.

KC95 · 09-18-2008, 08:38 AM

nice job!! and it sounds like you ended up getting your sandwich for free too.

not a bad deal if i must say so myself. but most important of all you said they stopped doing it so that is saving people from being scammed by them.

fffresh · 09-18-2008, 05:52 PM

The chargeback fees that Subway had to pay are hefty. I want to say they'r'e $50 or $75, if not more. I'm sure they didn't care about the $5 from the sandwich but more the charge back fee and strike on their merchant account. That's what got them to correct it. That's why I think chargeback fees are warrented because sometimes it takes that type of thing for them to have motivation to change.

05-15-2008, 04:20 PM	#1
Multi-Purpose Platinum Member Join Date: Apr 2008 Location: Somewhere in So Cal Posts: 76	How do you dispute illegal tax charges? In California, Subway is not supposed to charge tax on sandwiches you get to go. Only if you eat there do you pay tax. I've talked to managers and everything about this. Some of the locations illegal just enter every order as "Dine In" on the register so you get charged tax. That extra 8 1/2% adds up over time. How do you go about disputing this or reporting it? I'm really sick of them nickle and diming everyone illegally like that. If I made a complaint wouldn't they reverse all the charges? I don't want that, just the tax reversed but most importantly to teach them a lesson to stop doing it to customers.

09-01-2008, 12:47 PM	#5
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 279	I had this problem come up twice this weekend alone. The first time was at a Subway, which was previously mentioned on here, and the other was at a Chevron in Orange County. Subway charged sales tax on a to-go order for a cold sub - illegal in CA. 90% of Subways cooperate with this law. But once in a while you come across these scandalous ones owned by someone who's trying to make an extra buck at the expense of us. Chevron charged sales tax on a 20 oz bottle of Coke. I did not make a mistake and assume the CRV was the tax. They charged both CRV and a seperate charge for sales tax. The foreigner at the register gave me attitude and basically told me to get lost and he didn't care. I haven't done anything against the cash station yet, but like we already discussed the Subway thing on here, I called up American Express and did a fraudulent charge for the sub. I told them exactly why and said I only want to dispute this charge if they do a chargeback, not if Amex just refunds the money out of Amex's pocket. The reason this is important is now most transactions under $25 fall under different rules where the credit card companies voluntarily coughs up the money automatically to pay for the charge instead of doing the formal chargeback process. I did not want this since Amex didn't do anything so that was important to me because the whole point of doing it was to show the owner of that Subway that his scamming won't be accepted. A lot of people eat at Subway because their prices are less than the grocery store. Conning these low and middle income people out of an extra 8.25% is wrong. __________________ “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” -Warren Buffett Current Cards: American Express: Blue Cash, Simply Cash Bank of America: Visa Financial Rewards Platinum Plus Chase: Rewards Visa, Amazon Visa Discover: More Current Everyday Card: American Express Blue Cash

09-16-2008, 01:53 PM	#7
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 279	Victory! Thought I'd share the letter I got back from American Express for the illegal taxes Subway charged me too. __________________ “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” -Warren Buffett Current Cards: American Express: Blue Cash, Simply Cash Bank of America: Visa Financial Rewards Platinum Plus Chase: Rewards Visa, Amazon Visa Discover: More Current Everyday Card: American Express Blue Cash

09-16-2008, 02:02 PM	#8
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 279	and the follow-up letter... SUBWAY: DID THIS TEACH YOU NOT TO SCAM PEOPLE? Look at the dates on the letters, Amex didn't screw around they resolved this in two days! I've gone back to the Subway twice and no more illegal taxes charged. Happy I was able to stop them because I know a lot of people depend on Subway to get by (they take EBT/Food Stamps in CA) so they do NOT need to be screwing those people over. __________________ “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” -Warren Buffett Current Cards: American Express: Blue Cash, Simply Cash Bank of America: Visa Financial Rewards Platinum Plus Chase: Rewards Visa, Amazon Visa Discover: More Current Everyday Card: American Express Blue Cash Last edited by Mogul of Pineapples : 09-16-2008 at 02:05 PM.

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05-29-2008, 12:30 PM	#2
1bootcamp Platinum Member Join Date: Apr 2008 Location: Big Island, Hawaii Posts: 52	I once had to do that for something else. With my credit card though you couldn't reverse just part of the charge, they had to reverse the whole charge. So they reversed the entire charge. Not sure what the best way to go about that is. I guess call up your credit card company's customer service and see what they advise to do. Maybe if they do reverse the entire charges, it may be a good thing in the sense that will really get Subway's attention more than just reversing 8%.

05-30-2008, 07:25 PM	#4
Multi-Purpose Platinum Member Join Date: Apr 2008 Location: Somewhere in So Cal Posts: 76	Sorry I meant to say 8.25%. I'm in Los Angeles. It's only 7 3/4 in Sacramento? I guess only isn't the right word because that's still a lot higher than most of the country. Anyway good idea I will report that. When you think about it Subway's profit margin is probably only 5% or 10% anyway. By charging an illegal 8.25% on every dollar that's like doubling their profit margin. I'll look into reporting them this weekend. Thanks for the tip.

09-18-2008, 08:38 AM	#9
KC95 Gold Member Join Date: Apr 2008 Location: CT Posts: 42	nice job!! and it sounds like you ended up getting your sandwich for free too. not a bad deal if i must say so myself. but most important of all you said they stopped doing it so that is saving people from being scammed by them.

09-18-2008, 05:52 PM	#10
fffresh Centurion Member Join Date: Apr 2008 Location: the edge of the world Posts: 227	The chargeback fees that Subway had to pay are hefty. I want to say they'r'e $50 or $75, if not more. I'm sure they didn't care about the $5 from the sandwich but more the charge back fee and strike on their merchant account. That's what got them to correct it. That's why I think chargeback fees are warrented because sometimes it takes that type of thing for them to have motivation to change.