Home Depot charges B.C. tax on exempt items

CBC News Tuesday, May 11, 2010 | 6:11 AM PT

U.S.-based company blames computer glitch, promises customer refunds

Home Depot admits that it has been charging customers across B.C. seven per cent provincial sales tax on numerous tax-exempt items for at least a year and a half. The company's mistake came to light after Tosh Suzuki, a Home Depot customer from Delta, B.C., checked his receipts and found he'd been overcharged about $70 on tax-free items. "I knew certain goods were — or should be — PST exempt. The only problem is, I never checked at the store," said Suzuki. "When you purchase goods at a retail outlet, you hardly ever look at the receipts." Suzuki's receipts, dating back to January 2009, show he was charged PST on several bags of blow-in insulation, a smoke alarm and weather-stripping — all items which are exempt from provincial tax in B.C. Numerous PST exemptions apply under two broad categories — products to make residential homes more energy efficient, and safety equipment. Many of the exemptions have been in place since the 1970s and '80s.Consumer products on the exemption list, sold by Home Depot, include fire extinguishers, smoke detectors, caulking to keep heat in, insulation, weather stripping, Energy Star certified windows and doors, as well as many other items.

"We apologize to all customers that may have been impacted by these PST exemption errors," said a written statement, which quotes Dan McAreavey, Home Depot's vice-president, contract services and Canada west operations. "We encourage customers to visit their local Home Depot store with their receipt to see if they are eligible for a refund on the PST that may have been incorrectly charged," he added. "The operational processes around tax compliance are being fully reviewed to prevent this from happening in the future." (more)