MIAMI – A woman has filed a class-action lawsuit against Target and Walmart claiming the retailers violate Florida's Deceptive and Unfair Trade Practices Act by charging sales taxes on American flags, which are categorized as tax-exempt items under state law.
Pamela Knopman filed the lawsuit in federal court against Target Corporation, Walmart Stores East and Walmart citing violations of Florida's Deceptive and Unfair Trade Practices Act, unjust enrichment and negligence.
According to court documents, Florida Sales Tax Rules Section 12A-1.001[4] mandates that retailers operating in Florida cannot collect sales tax on sales of the United States flag and related accessories such as mounting brackets, standards, halyards, and instructions.
On July 15, 2023, Knopman says she purchased an American flag and accessories online from Walmart and was charged a sales tax on her purchase. On July 17, 2023, she says she purchased an American flag and accessories online from Target and also was charged a sales tax.
By collecting sales tax on tax-exempt items, Knopman says the defendants violated FDUTPA. She says the conduct resulted in unlawful charges, misappropriation and unjust enrichment by the defendants. Additionally, she claims the defendants failed to remit the unlawfully collected sales tax to the Florida state authorities.
Knopman is seeking certification of his class-action lawsuit and is demanding compensatory damages plus interest, court costs, attorney fees and other relief. She is being represented by Jason Turchin of the Law Offices of Jason Turchin and Steven Bennett Blau of Blau Law Group.
U.S. District Court for the Southern Division of Florida case number 9:23-cv-81389