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Guterman v. Costco Wholesale Corp.

Suit Over Illegal Sales Tax on Full, Not Reduced, Prices of Coupon Purchases Is Dismissed

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OPINION & ORDER Plaintiff Mark A. Guterman (“Plaintiff”), individually and on behalf of others similarly situated, brings this putative class action against Costco Wholesale Corporation (“Costco” or “Defendant”), alleging a private right of action under New York Tax Law §1139, and asserting claims for violations of New York General Business Law (“GBL”) §349 and for unjust enrichment. (See Second Am. Compl. (“SAC”) (Dkt. No. 20).) Plaintiff alleges that Costco has illegally charged its New York customers sales tax on the full price rather than the reduced price of their coupon-related warehouse purchases, and thus required its New York customers to reimburse Costco for its liability for sales tax on the difference between the reduced price and the full price. (Id.

6-7.) Before the Court is Costco’s Motion To Dismiss the Second Amended Complaint pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6) (the “Motion”). (See Notice of Motion (Dkt. No. 16).) For the reasons to follow, the Motion is granted.I. BackgroundA. Factual BackgroundThe following facts are drawn from the Second Amended Complaint (“SAC”) and are taken as true for the purpose of resolving the instant Motion. (SAC.)Plaintiff, a Costco customer, alleges that he improperly paid sales tax to Costco at a New York warehouse on the full price, rather than the reduced price, of taxable items purchased, when the price reduction was based on a coupon issued by Costco in its monthly coupon booklet that was not labeled as a manufacturer’s coupon. (Id.

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