Skims Pays $200,000 to Settle New Jersey Sales Tax Case Over Clothing Exemptions

• Skims Body, Inc. settled with New Jersey for $200,000 over allegations of improperly collecting sales tax on tax-exempt clothing from 2019 to 2024.
• The company agreed to improve its systems to prevent future improper tax collection and to promptly process consumer refund requests for the next four years.
• Skims resolved the case without admitting wrongdoing.
• The case highlights the risks and consequences for companies that over-collect sales tax, including penalties and reputational harm.

Source: njoag.gov

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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