On September 1, 2023, Huntsville residents noticed that they were being charged more tax for their groceries at Walmart, rather than 1% less tax. Walmart explained the mishap and is working to correct it.

Walmart store (stock photo)Photo byMike Mozart; CC BY 2.0

If you live in Alabama and you are buying groceries at Walmart or Sam's Club, make sure you check your receipt after you check out.

Huntsville Alabama Residents Were Charged 17% Tax on September 1, 2023

WAFF 48 News reported that a number of Huntsville residents contacted them to investigate why they were being charged an incorrect sales tax at Walmart and Sam's Club stores. The problem extended outside of Huntsville to residents all over the state.

Below is a receipt showing that a customer who went to Walmart Neighborhood Market at 9020 Bailey Cove Road in Huntsville was charged 9% on the first 'TAX1' line and then an additional 8% on the next 'TAX2' line, totaling 17% tax rate.

*The state portion of the sales tax on groceries went from 4% to 3% on September 1, 2023. Any additional amount of tax is dependent on the sales tax jurisdiction in Alabama.

Walmart Neighborhood Market receiptPhoto byWAFF 48 News

WHNT News 19 also reported a number of calls on this Walmart issue. One customer who talked to WHNT News 19 noticed that he was charged 17% total on his receipt, and was "shocked that no one at the [Walmart] registers was telling customers what was going on."

A Walmart receipt shown by WHNT News 19 can be seen below.

Walmart receipt showing two tax linesPhoto byWHNT News 19

*Some Alabama residents in Gardendale and Valley have reported that they were charged 19% sales tax at their Walmart store.

Walmart Spokesperson Confirmed They Are 'Trying to Fix the Error'

After an investigation into the matter, a Walmart spokesperson confirmed that there was an error that Walmart customers in Alabama were seeing, and it is directly related to the new 8% sales tax rate on groceries statewide. The issue appears to be that their system is still charging the old rate (9%) on top of the new rate (8%), so customers are paying an effective rate of (17%).

The statement from the Walmart spokesperson read:

“Earlier today, some Walmart customers and Sam’s Club members across Alabama were incorrectly overcharged sales tax while shopping with us. Effective Sept. 1, the sales tax rate on food decreased by one percentage point statewide. Our systems mistakenly charged both the old rate and the new rate at the time of sale.

The situation is [continuing to be corrected,] and not all of Walmart’s Alabama stores have addressed the issue. We’re asking potentially impacted customers to take their receipts to their nearby stores or clubs for a refund of the higher sales tax.” -Walmart spokesperson

If you were charged too much and notice two tax lines on your Walmart or Sam's Club receipt, Walmart and Sam's Club will give you a refund on the additional 9% tax paid.

WAFF 48 News also posted about this on Facebook (seen below):

Comments on the Facebook Post

Many local residents who were charged incorrectly commented on WAFF 48 News Facebook post, and where they were located.

The following people saw the incorrect tax charged on their Walmart receipts:

• Vonda Monteleone in Athens
• Rethia Grogan in Boaz
• Laynett Bentley in Cullman
• Joan Mangen in Florence
• Elisha Patterson in Gadsden
• Tammy Woods in Gardendale
• Debra Russell in Moulton
• Debbie Higgins in Muscle Shoals

Thoughts

Have you shopped at Walmart in Alabama and noticed the incorrect tax rate on your receipt?

Please share this article on social media so friends and family can stay informed on this story.

Sources

Alabama Department of Revenue Sales and Use Tax Rates webpage.

Elmore, Josiah and Emily Moessner. "Walmart, Sam’s Club customers across Alabama mischarged after grocery tax change." WHNT News 19. 1 September 2023.

Hogg, Ryan. "A sales tax snafu at Walmart meant customers were charged twice." Business Insider. 2 September 2023.

Smith, Wade. "Walmart customers charged incorrect totals after food tax reduction in Alabama." WAFF 48 News. 1 September 2023.

WAFF 48 News Facebook post.