COSTCO shoppers were told to check their receipts after part of the payment system overcharged shoppers at the grand opening.
A new warehouse opened in West Omaha, Nebraska, on Friday, with excited members lining up to see the highly anticipated store.
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However, shortly after opening, the local media outlet WOW began receiving calls from Costco members who had been overcharged.
It all comes down to little-known rules and regulations regarding store location.
The 32-acre parcel where Costco is situated is on the city limits known as “Whispering Ridge West.”
However, the city announced plans to annex the property, placing it under Omaha’s control.
Under this plan, Costco configured its systems to comply with Omaha tax regulations, charging shoppers a 7% city tax, according to WOWT.
However, the property has not yet been officially annexed, so Costco should only charge a 5.5% state sales tax.
“They hadn’t been annexed yet, so they were charging a little more than they should have in sales tax,” shopper Carl Macchietti told the news outlet in the new store’s parking lot.
The wholesale retailer would also be charging the city’s 2.5% restaurant tax.
WOWT previously reported that final city council approval could be given as early as July 16, when the vote is scheduled to take place.
However, even if the approval is approved on Tuesday, the ordinance will take 15 days to come into effect, the media outlet said.
This means the retailer won’t be able to start collecting Omaha city taxes until July 31 at the earliest.
While Costco had no comment to WOWT, Omaha Chief Financial Officer Steve Curtiss explained that the retailer was not at fault and made a simple mistake that is being corrected.
The city learned of the error in the Costco store’s tax system after being contacted by the media, Curtiss explained.
“Channel 6 called us and we started working on it,” said the finance director.
“We managed to get in touch [Costco] and I think they were already correcting that,” he said.
“The main thing is that they thought they had already been annexed, they thought they were in the city.
“They realize they probably will in the next few months, but not currently.”
Membership and store cards offered by major retailers
Here’s a breakdown of store cards offered to customers from various retailers and their benefits
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Costco:
- Gold Star Membership: $60 per year, shop at all Costco stores and online with two additional cards for your family.
- Executive Member: $120 per year, 2% annual rewards, discounts and additional benefits on Costco services, shop online and in-store and get two additional cards for home use.
- Sign up for a Costco membership here
Sam’s Club:
- Club membership: $50 Per Year, Bonus Offers, Same Day Delivery, Instant Savings, Sam’s Club Mastercard, Members Only Fuel Savings, Tire & Battery Center, Free Membership and Complimentary Memberships.
- More membership: $110 per year, all the benefits of Club membership plus Sam’s Cash, free shipping, free curbside pickup, advance purchases, and pharmacy and optical discounts.
- Sign up for a Sam’s Club membership here
Target:
- Target Circle: A free rewards program that allows users to earn 1% in Target Circle Earnings rewards when a qualifying purchase is made, access personalized deals and offers, receive a birthday gift, and earn a vote to help direct how Target helps your community .
- Target Circle Card: A credit, debit or reloadable card that offers users 5% off in-store and online, as well as exclusive offers, free two-day shipping and an additional 30-day return window. Formerly Target RedCard.
- Sign up for Target circle here
Walmart:
- Walmart+: $12.95 per month or $98 per year with 30-day free trial. It offers members free delivery, free shipping with no minimum spend, fuel savings, Paramount+ subscription, car, Walmart+ travel, home drop-off, mobile scan and store entry, and early access to offers and product launches.
- Sign up for Walmart+ here
He added that the problem would likely be fixed by opening on July 13, if not sooner.
Costco members like Maccheitti who overcharged on opening day will be reimbursed by the wholesaler.
This process is facilitated by the way Costco conducts its operations.
“They know who overpaid because they’re all members,” Curtiss said.
“They will be able to reach out and figure out how to refund or credit anyone who has already paid what they shouldn’t have.”
Meanwhile, Maccheitti isn’t worried, saying Costco runs “a classy operation” that he and his family “love.”
“I would assume Costco would fix it somehow…they will fix these mistakes,” he added.
The US Sun has reached out to Costco for comment.
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This story originally appeared on The-sun.com read the full story
