California – Sales Tax Refund for Optional Service Contracts Purchased from Dell

SALT Report 2042 – The California State Board of Equalization announced that a settlement has been reached in a class action lawsuit that involves purchasers of Dell computer products and optional service contracts, Dell, and the BOE. The settlement is the result of a class action lawsuit involving claims that the defendants, Dell Inc. and its subsidiaries, improperly charged California use tax on purchases of optional service contracts and remitted these taxes to the BOE.  Therefore, if you paid sales tax to Dell on your purchase of optional service contracts, you may be eligible for a refund.

Currently, there are two settlement agreements: the “Dell Settlement” and the “SBE Settlement.” Anyone who is eligible to receive a refund under one or both of these settlement agreements must file a claim or claims.  However, each settlement agreement has different eligibility criteria, and taxpayers must file a claim for the settlement agreement in which they are eligible.  In certain cases, taxpayers may be eligible for both settlement agreements and must file a separate claim for each agreement.

If you received a Short Form Notice and Individual Summary for the Dell Settlement or the SBE Settlement you are advised that Dell’s records indicate that you have made one or more service contract purchases that may entitle you to compensation under one or both of the settlement agreements. If Dell’s records indicate that you have made more than one purchase and qualify for both settlements, you will receive two separate notices.

The deadline to file a claim and other important dates are as follows:

  • The claim filing deadline is May 29, 2013,
  • The deadline to be excluded from the settlement is March 19, 2013,
  • The deadline to object to, or comment on, the settlement is March 19, 2013, and
  • The final hearing is April 18, 2013, 9:30 a.m.

For Further Information:

California State Board of Equalization – Dell and SBE Litigation Settlement on Optional Service Contracts- Claim for Refunds