Overview
- New Jersey officials said Skims improperly collected sales tax on largely exempt clothing and footwear from 2019 through 2024.
- The consent order was dated Jan. 16 and publicly announced Jan. 20 by the attorney general’s office.
- Skims had already remitted the collected tax to the New Jersey Division of Taxation, so customer refunds must be pursued under a four-year “best efforts” requirement.
- The attorney general’s office labeled the conduct “unconscionable business practices,” while Skims said it mistakenly charged the tax and agreed to compliance reforms.
- Reports indicate some customers received refunds after complaining, and the high-profile brand enters the settlement with a valuation reported at about $5 billion.