An Illinois man sued three retailers alleging they overcharged him for tax on groceries by a combined total of $1.46.

Chang Wong sued Whole Foods in January, claiming the store overcharged him by $1.39 in sales tax because the tax amount was computed based on his pre-coupon total of $22.39, instead of his post-coupon total of $7.39. In the other two instances, one involving the Jewel-Osco grocery chain and the other Target, Wong claims he was overcharged a nickel by the former and two cents by the latter, when he purchased coffee from each using a Starbucks coupon.

According to Illinois law, a retailer is required to reduce the taxable total for store-issued coupons but not for manufacturer's coupons.  Despite the distinction, in a number of similar cases filed over the years, judges have determined that if a retailer overtaxes a customer and sends that tax money to the state, the proper course of action is for the customer to appeal to the state for their money back – not to sue the retailer. Wong maintained that because the Starbuck's coupons didn't include any wording to the effect that the "consumer is responsible for any sales tax," the stores were wrong to charge it to him and not Starbucks. Jewel-Oslo spokeswoman Melissa Hill told reporters that the chain "will not be instituting any changes with our current process of collecting sales tax" as a result of the settlement.

According to news reports, Wong has reached settlements with Jewel-Osco and Target, and appears poised to settle with Whole Foods. Wong also has a lawsuit pending against Domino's Pizza for a 72-cent overcharge for tax on the delivery fee.

—Source:  couponsinthenews.com