Echoes of California’s celebrated smog-fee affair:
A class-action lawsuit seeking refunds for 120,000 Utahns wrongly charged millions of dollars in sales taxes for floor coverings and installation has been criticized as a full-retirement plan for lawyers rather than a boon to consumers.
That is because the erroneously taxed consumers could have gotten a full refund — simply by calling the Utah State Tax Commission and making a claim.
“There was no need for a class-action lawsuit,” said Assistant Attorney General Clark Snelson, who represented the Utah State Tax Commission in litigation against challenging the tax collections. “Individuals had the ability to come to the Tax Commission to get their refund, which made the lawsuit unnecessary.”
Under the terms of the settlement, “half of the $5.7 million settlement goes to plaintiffs’ attorneys and investigators”. (Dawn House, “Was tax refund lawsuit needed?”, Salt Lake Tribune, Jun. 30).
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