Four chain stores in Iowa are being sued for allegedly collecting state sales taxes on food, which should not be taxed. Iowa sales tax is only to be charged on food, which can be immediately consumed. The lawsuit alleges Younkers, Borders Book Stores, Richman Gordman Half-Price stores and T-J Maxx stores charge sales tax on food which should NOT be taxed, things like jars of raw pasta and boxes of cookies. State tax collectors say they spot check retailers, but not every retailer gets reviewed.Renee Mulvey, spokeswoman for the Iowa Department of Revenue and Finance, says the monthly sales tax receipts from retailers are general, not specific.Mulvey says Iowans who believe they’re being gypped don’t have to file a lawsuit. She says you should first report it to the retailer and if you get no satisfaction, send a copy of the receipt to the Department. Mulvey says they will refund the sales tax and investigate the store.Mulvey says you can make an anonymous tip to her agency, too, if you believe a store is incorrectly charging sales tax on food. None of the retailers responded to Radio Iowa’s requests for interviews.
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