New Jersey Tax Court rules against drugstore.com

Bellevue-based drugstore.com said Friday that it’s taking a pretax charge of $2.5 million, or 3 cents per share, for the 2007 fiscal year after a New Jersey tax ruling against the online company.

Drugstore.com, in a filing made public Friday, said the Tax Court of New Jersey had upheld a state division of taxation assessment against drugstore.com for $221,626 in taxes plus $11,081 in penalties and interest.

The assessment stems from drugstore.com allegedly not collecting and remitting sales taxes to the division on sales made in New Jersey in 2000 and 2001.

The company said it didn’t believe it was required to collect sales taxes on sales made to customers in New Jersey.

The company is appealing the decision, but with the ruling, drugstore.com said it would take a pretax charge for its New Jersey tax liability in 2000 and 2001 as well as for all subsequent years through 2007.

The charge increases the fiscal 2007 net loss to $11.5 million, or 12 cents a share.

The company said it intends to begin collecting and remitting sales taxes on taxable New Jersey sales.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: