Bloomberg Tax
March 15, 2023, 7:47 PM

Pennsylvania Mask Sales Tax Cases Against Mall Stores Tossed

Perry Cooper
Perry Cooper
Legal Reporter

Foot Locker Inc., American Eagle Outfitters Inc., The Gap Inc., and other retailers convinced a Pennsylvania appeals court to toss a class action alleging they improperly charged sales tax on cloth face mask purchases.

Daniel Garcia filed a proposed class action against the stores alleging they violated the state’s unfair trade practices law by charging sales tax for items that were exempt. A trial court denied the retailers’ motions to dismiss.

The Pennsylvania Superior Court reversed in a pair of opinions filed Tuesday. It held that a suit over the collection of sales tax on nontaxable items ...