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GoPro Excessive Sales Tax Collection Florida Class Action

When plaintiff Luis Cabassa traded in his old GoPro camera for a discount on a new one, he expected to be charged sales tax only on the amount of the sale—that is, the amount he was paying for the new device. Instead, the complaint for this class action alleges, GoPro charged him sales tax on the full amount—the amount he paid plus the value of his old device.

The class for this action is all GoPro customers who made online purchases and paid sales tax on the full, non-discounted price of products purchased with a dealer discount or credit, in violation of Florida law, within the statutory period.

Plaintiff Cabassa traded in a his old GoPro camera for a $50 discount on a new, more advanced model, the complaint says. It claims that GoPro later sold traded-in earlier models

The complaint claims that a discount given for a trade-in item is called a “dealer’s discount” under Florida law, and that the law requires GoPro to collect sales tax on the final, discounted price only. According to the complaint, the discounted amount is not taxable.

The complaint quotes the law as saying, “Where used articles … are taken in trade … as a credit or part payment on the sale of new articles, the tax levied by this chapter shall be paid on the sales price of the new article, less the credit for the used article taken in trade.”

In another part, the law says, “Discounts allowed and taken at the time of sale are deducted from the selling price, and the tax is due on the net amount paid at the time of sale.”

The law differs for manufacturers’ discounts, the complaint says, where tax is collected on the full amount, because later the manufacturer refunds the discount to the dealer so that the dealer has in fact received the full price.

The complaint alleges that not only is the extra sales tax a “fraudulently-concealed surcharge,” but that GoPro retains the amount as profit, instead of paying it as tax to the Florida Department of Revenue.

The complaint claims that GoPro has violated Florida’s Unfair Trade Practices Act, has committed fraudulent and negligent misrepresentation, and should pay damages for charging excessive sales tax in violation of sales tax laws.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

GoPro Excessive Sales Tax Collection Florida Complaint

September 21, 2017

When plaintiff Luis Cabassa traded in his old GoPro camera for a discount on a new one, he expected to be charged sales tax only on the amount of the sale—that is, the amount he was paying for the new device. Instead, the complaint for this class action alleges, GoPro charged him sales tax on the full amount—the amount he paid plus the value of his old device. The complaint claims that a discount given for a trade-in item is called a “dealer’s discount” under Florida law, and that the law requires GoPro to collect sales tax on the final, discounted price only. According to the complaint, the discounted amount is not taxable. 

go_pro_sales_tax_complaint.pdf

Case Event History

GoPro Excessive Sales Tax Collection Florida Complaint

September 21, 2017

When plaintiff Luis Cabassa traded in his old GoPro camera for a discount on a new one, he expected to be charged sales tax only on the amount of the sale—that is, the amount he was paying for the new device. Instead, the complaint for this class action alleges, GoPro charged him sales tax on the full amount—the amount he paid plus the value of his old device. The complaint claims that a discount given for a trade-in item is called a “dealer’s discount” under Florida law, and that the law requires GoPro to collect sales tax on the final, discounted price only. According to the complaint, the discounted amount is not taxable. 

go_pro_sales_tax_complaint.pdf
Tags: Improper Sales Tax Charges, Tax Charges