Electronics retailer Best Buy has sued the state of Tennessee looking to get a refund of more than $1.3 million in state sales taxes. Best Buy officials claims they are due the cash because of state law allowing retailers to get back sales taxes related to an unpaid debt.
The money in question comes from purchases made at Tennessee Best Buy stores from 2008 to 2011 on credit cards issued on behalf of the retailer. A number of purchasers later defaulted on their credit card payments and Best Buy now wants the sales taxes from those purchases refunded.
Best Buy is claiming that it's eligible under a state statute that allows “a deduction from taxable sales ... for bad debts arising from a sale on which the tax imposed by this chapter was paid.” The national electronics retailer claims to have filed a request for the refund last year. But the state never responded, thus in effect denying the request.
Best Buy, which last year earned $330 million from continuing operations on almost $51 billion in revenues, runs about 25 full-scale and mobile standalone stores in Tennessee.