Some reliable Amazon customers in San Diego County are receiving refunds after being overcharged sales tax.
For months, Joe Witkin, who is a retired ER physician, was charged a higher sales tax rate than he’s required to pay.
“Starting on May 1 of this year, the sales tax they were charging my wife and I for purchases jumped from the correct 7.75 [%] up to 8.75,” Witkin told NBC 7 on Monday.
Witkin lives in Del Mar Heights, which is in the city of San Diego. San Diego has a 7.75% sales tax rate. Del Mar, though, has an 8.75% sales tax rate.
Del Mar Heights and the city of Del Mar share the 92014 ZIP code.
“I mean, I don’t imagine it was being done intentionally,” Witkin said. “I did a little research, and I understand that large corporations use services to figure out the tax based on the address for their customers.”
Witkin calculated the charges since May 1.
“I added my numbers up — including that expensive laptop — we spent close to $7,000 since May 1 on Amazon, so 1% of that excess tax is about $70,” Witkin said.
When Witkin contacted Amazon, he was initially met with some resistance before it successfully resolved the problem by sending him a refund and a gift card, according to Witkin.
At least one of Witkin’s neighbors benefited from the ordeal when Amazon contacted her about overcharges that went unnoticed.
“I received an email from Amazon saying it has come to their attention that they had been overcharging for sales tax,” Cynthia Waage said.
Waage told NBC 7 that she was refunded the amount she was overcharged and also received a gift card.
Despite the experience, both Witkin and Waage remain Amazon customers.
“Oh, yeah, I’m not going to give that up,” Witkin said.