Walmart, Target Sued for Charging Sales Taxes on American Flags

Target Corp. and Walmart Inc. allegedly violated the Florida Deceptive and Unfair Trade Practices Act by charging customers sales tax on American flags, even though they’re exempt.

Target, Walmart, and subsidiary Wal-Mart Stores East LP are defendants in a proposed class action filed Monday in the US District Court for the Southern District of Florida.

Customer Pamela Knopman sued alleging she had been charged an “unlawful sales tax” of $0.89 by Target and $1.12 by Walmart after purchasing American flags through their websites.

“Defendants, as licensed retailers, knew or should have known that the sale in Florida, of the United States flag, is nontaxable and exempt from sales tax,” the complaint said.

Walmart and Target also acted negligently and were unjustly enriched, the lawsuit said.

Knopman seeks to represent a class of customers who purchased an American flag online from Target or Walmart locations in Florida, for delivery in Florida, within the past four years, who were charged sales tax. She also seeks compensatory and punitive damages.

Target and Walmart didn’t immediately return emailed requests for comment.

Jason Turchin of Weston, Fla., represents Knopman.

The case is Knopman v. Target Corp., S.D. Fla., No. 23-cv-81389, complaint filed 10/16/23.