The plaintiffs said Sage improperly charged the tax on the download in states in which such sales that are not accompanied by the transfer of tangible property are not subject to sales tax. The final approval hearing is scheduled for the Los Angeles court on March 4. The settlement applies to those who have not received reimbursement or credit from Sage or from states in which Sage has remitted the tax. The purchasers involved are those who paid the tax and lived in the following states at the time of the purchase: Arkansas, California, Colorado, Georgia, Kentucky, Iowa, Maryland, Massachusetts, Missouri, Nevada, North Carolina, Oklahoma, Rhode Island, South Carolina and Virginia. Sage has posted the terms and notice of settlement on its website and it can be accessed by a link from the home page. That summary does not discuss which products were sold. Two of the class representatives, R. Stephen Staley and Ernest Howard, are entitled to a service award of up to $1,000 each.
SAGE SALES TAX SUIT NEARS END Featured
Sage is approaching the approval of a settlement of a class action suit which said the company improperly collected sales tax on downloaded software sold in 15 states. Sage has agreed to pay users 115 percent of sales tax collected in those states and plaintiff legal costs of up to $500,000 for those who paid the tax on products downloaded between June 28, 2008 and April 30, 2013. The case, Ernest Howard v. Sage Software, was filed in Los Angeles Superior Court on June 28, 2012.
