KEEFE COMMISSARY OVERCHARGES SALES TAX ON PRISONER SALES (Copy of Complaint to Idaho State Tax Commission)
Dear Tax Commission:
As I'm sure you are aware, Idaho Code 63-3619(c) requires that retailers calculate (sales) tax upon the entire amount of purchases of the consumer made at a particular time and not separately upon each item purchased - (often referred to a line item purchases). Despite this statute, Keefe Commissary Network (KCN), a company contracted by the Idaho Department of Correction (IDOC) to provide retail sales of commissary goods to prisoners continues to utilize line-item calculations when calculating (Idaho) sales tax on these retail sales.
Several years ago, a lawsuit was initiated in the Ada County court regarding this very matter. The Tax Commission made it clear that KCN had no exemption to allow the use of line-item calculations, however, because an employee at the Idaho State Tax Commission - without authorization - had told KCN and IDOC that they could utilize line-item calculations on inmate purchases, the court ruled that KCN had a [then] reasonable belief that the use of line-item calculations was proper. After the lawsuit, knowing the statutory prohibition on utilizing line-item calculations, KCN discontinued using line-item calculations in their retail sales - but they have once again adopted this prohibited practice.
This Commission has a responsibility under the law to taxpayers to enforce [tax] statutes and codes (Idaho Code 63-105), and I would hereby request this Commission investigate and enforce the provisions of Idaho Code 63-3619(c) as related to KCN's current unlawful use of line-item calculations when calculating sales tax on retail sales to prisoners.
In support of these claims, I have set forth below details of eleven (11) instances of KCN utilizing line-item calculations which have resulted in the over-charging of sales tax to my account. The DATE of the order is reflected, as well as the (KCN) ORDER NUMBER, the TOTAL amount of the purchase, six percent (6%) of the total amount of the purchase, the amount actually TAXED by KCN and the amount reflected in the SALES AND USE TAX BRACKET CARD - 6% RATE issued by the Idaho State Tax Commission pursuant to Idaho Code 63-3619(c). Documentation of these figures is available to this Commission upon request.
In addition to the enforcement of statute, I would request and expect that KCN be required to reimburse my account (as well of the accounts of all prisoners which have been overcharged by the improper utilization of line-item calculations over the past two (2) years) the amount of overcharged sales tax. To the extent it may be necessary, I would hereby grant this commission authorization to access records related to [my] KCN commissary purchases over the past three (3) years from the date of this email.
Thank you for your time and consideration in this matter. You may contact me via email at daleshackelford1@gmail.com or write to me directly at:
Dale C. Shackelford
#64613 / ISCC / Unit F
P.O. Box 70010
Boise, ID 83707
/s/ Dale Shackelford
cc: > jmckay@idoc.idaho.com
(IDOC Contract Manager)
> idahoprisonblog.blogspot.com
As I'm sure you are aware, Idaho Code 63-3619(c) requires that retailers calculate (sales) tax upon the entire amount of purchases of the consumer made at a particular time and not separately upon each item purchased - (often referred to a line item purchases). Despite this statute, Keefe Commissary Network (KCN), a company contracted by the Idaho Department of Correction (IDOC) to provide retail sales of commissary goods to prisoners continues to utilize line-item calculations when calculating (Idaho) sales tax on these retail sales.
Several years ago, a lawsuit was initiated in the Ada County court regarding this very matter. The Tax Commission made it clear that KCN had no exemption to allow the use of line-item calculations, however, because an employee at the Idaho State Tax Commission - without authorization - had told KCN and IDOC that they could utilize line-item calculations on inmate purchases, the court ruled that KCN had a [then] reasonable belief that the use of line-item calculations was proper. After the lawsuit, knowing the statutory prohibition on utilizing line-item calculations, KCN discontinued using line-item calculations in their retail sales - but they have once again adopted this prohibited practice.
This Commission has a responsibility under the law to taxpayers to enforce [tax] statutes and codes (Idaho Code 63-105), and I would hereby request this Commission investigate and enforce the provisions of Idaho Code 63-3619(c) as related to KCN's current unlawful use of line-item calculations when calculating sales tax on retail sales to prisoners.
In support of these claims, I have set forth below details of eleven (11) instances of KCN utilizing line-item calculations which have resulted in the over-charging of sales tax to my account. The DATE of the order is reflected, as well as the (KCN) ORDER NUMBER, the TOTAL amount of the purchase, six percent (6%) of the total amount of the purchase, the amount actually TAXED by KCN and the amount reflected in the SALES AND USE TAX BRACKET CARD - 6% RATE issued by the Idaho State Tax Commission pursuant to Idaho Code 63-3619(c). Documentation of these figures is available to this Commission upon request.
| Date | Order # | Total | 6.00% | Taxed | Bracket |
| 04/04/17 | 450740 | 25.87 | 1.5522 | 1.57 | 1.55 |
| 08/22/17 | 559973 | 16.35 | 0.981 | 0.99 | 0.98 |
| 09/06/17 | 570514 | 27.17 | 1.6302 | 1.66 | 1.63 |
| 09/19/17 | 581095 | 30.76 | 1.8456 | 1.87 | 1.85 |
| 10/17/17 | 604091 | 10.65 | 0.639 | 0.65 | 0.64 |
| 10/31/17 | 614971 | 22.71 | 1.2846 | 1.3 | 1.29 |
| 12/12/17 | 651966 | 7.7 | 0.462 | 0.47 | 0.46 |
| 01/23/18 | 686376 | 35.2 | 2.112 | 2.12 | 2.11 |
| 03/20/18 | 731602 | 25.3 | 1.518 | 1.54 | 1.52 |
| 03/27/18 | 737467 | 34.8 | 2.088 | 2.1 | 2.09 |
| 04/24/18 | 761486 | 23.5 | 1.41 | 1.42 | 1.41 |
In addition to the enforcement of statute, I would request and expect that KCN be required to reimburse my account (as well of the accounts of all prisoners which have been overcharged by the improper utilization of line-item calculations over the past two (2) years) the amount of overcharged sales tax. To the extent it may be necessary, I would hereby grant this commission authorization to access records related to [my] KCN commissary purchases over the past three (3) years from the date of this email.
Thank you for your time and consideration in this matter. You may contact me via email at daleshackelford1@gmail.com or write to me directly at:
Dale C. Shackelford
#64613 / ISCC / Unit F
P.O. Box 70010
Boise, ID 83707
/s/ Dale Shackelford
cc: > jmckay@idoc.idaho.com
(IDOC Contract Manager)
> idahoprisonblog.blogspot.com