Walmart and Sam’s Club customers in Alabama were overcharged on their sales tax on Friday, September 1, 2023, due to a system error. The error occurred on the first day of the new grocery sales tax cut in Alabama, which reduced the tax rate by one percentage point statewide. However, some shoppers were charged both the old and the new rates at the checkout, resulting in a double charge.
The company said that the situation was being corrected and asked the affected customers to take their receipts to their nearby stores or clubs for a refund of the higher sales tax. Walmart and Sam’s Club have not disclosed how many customers were impacted by the error or how much money was overcharged.
How to get a refund?
Customers who were overcharged can get a refund by taking their receipts to the membership desk at the store or club where they made the purchase. They can also contact the electronic payments hotline at 479-277-2643 for assistance with double charges or authorization holds. The hotline is available from Monday to Friday from 8:00 am to 3:30 pm Central time.
Customers should check their receipts carefully and compare the sales tax amount with the new rate of 4% for groceries. If they find any discrepancy, they should request a refund as soon as possible.
Why did the sales tax change?
The sales tax cut on groceries was part of a larger tax reform package passed by the Alabama legislature in May 2023. The package also included an increase in the income tax exemption for low-income earners, a reduction in the corporate income tax rate, and a repeal of some outdated taxes.
The tax reform was intended to make the state’s tax system more fair and progressive, as well as to stimulate economic growth and job creation. According to Governor Kay Ivey, the tax cut on groceries would save Alabama families an average of $300 per year.
How did customers react?
Many customers were frustrated and confused by the double charge error, especially since they were expecting to save money on their grocery bills. Some customers took to social media to express their dissatisfaction and demand an explanation from Walmart and Sam’s Club.
One customer tweeted: “Walmart and Sam’s Club double charged me sales tax today. I thought they were supposed to lower it. What a rip-off!” Another customer wrote on Facebook: “I just got back from Sam’s Club and noticed they charged me twice for sales tax. How can they do that? This is unacceptable!”
However, some customers were more understanding and appreciated the company’s quick response and apology. One customer commented: “I was overcharged too, but I went back to the store and got my refund. They said it was a system error and they were sorry. I’m not mad, mistakes happen.”