PITTSBURGH — Sales tax is a reality for shoppers in most states, including Pennsylvania. But not all items purchased in stores are subject to being taxed, and it's important to know what is exempt to avoid being charged extra at the checkout line.
"My attitude is, anybody doing business in the state of Pennsylvania better get it right," said Mary Bach, a consumer advocate.
Bach is an expert in navigating Pennsylvania's sometimes complicated sales tax. The tax law is so complicated, in fact, many national chains mistakenly charge customers Pennsylvania sales tax when there shouldn't be any.
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"They have to stay on top of what's taxable in individual states, because it does vary so greatly from state to state," said Bach.
Bach has successfully filed lawsuits against stores in Pennsylvania for more than 20 years for incorrectly taxing her purchases, and she's made it her mission to make sure others know how the system works.
Traditionally, items were broken down into two categories: necessity and luxury. Necessities, like baby diapers, were not taxed, while luxury items, like prepared foods, were.
"That rule of thumb doesn't hold true, and I'm trying to debunk it," said Bach.
Bach said those categories have expanded over the years and also can run contrary to what you might expect. For example, personal hygiene items like deodorant and shampoo don't fall into "necessity" items, and so they are subject to sales tax. Carbonated beverages are taxable, but water is not -- unless it's flavored. Flavored water is taxable. Toothbrushes are not taxable, but mouthwash is.
The moment of truth comes at the checkout line, and knowing how to read your receipt, which contains coded info with the store's symbol for sales tax. At Target, items are either labeled "T" for taxable or "N" for not taxable.
"Some of the stores use other letters, like "Xes or "Os," said Bach.
When 11 Investigates went to the store, Target applied sales tax perfectly. Bach said if a store doesn't, go to customer service and demand your bill be adjusted.
Click here to read the entire list of taxable items in Pennsylvania.
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