Amazon Refunds Customers for Sales Tax Overcharge in San Diego

News Summary

Residents of Del Mar Heights, San Diego, are receiving refunds from Amazon for a sales tax overcharge caused by a miscalculation of local tax rates. The issue was highlighted by a retired doctor who discovered the error after noticing he was charged a rate of 8.75% instead of the correct 7.75%. Following community advocacy, Amazon confirmed the mistake and has begun issuing refunds to affected customers, along with some gift cards as part of the resolution process.

Del Mar Heights, San Diego – Amazon Refunds Customers for Sales Tax Overcharge

Amazon is in the process of refunding residents of Del Mar Heights, San Diego, who were overcharged sales tax due to an error in tax rates. The miscalculation was brought to light through the efforts of a retired doctor, Joe Witkin, who advocated for residents after discovering that Amazon had been charging them at a higher tax rate.

The issue arose when Amazon began charging a sales tax of 8.75% to Del Mar Heights residents starting on May 1, 2025. This was incorrect, as the appropriate sales tax for Del Mar Heights is 7.75%, due to an additional one-cent surcharge implemented by voters in 2016. Witkin’s inquiry into his own orders revealed that he was overcharged a total of $69.90 across 66 purchases made between May 1 and June 26, amounting to $6,990 in total purchases under his and his wife’s accounts.

Advocacy and Response

To address the issue, Witkin initially contacted Amazon directly through email on June 26, but received a lackluster response that failed to acknowledge the sales tax error or offer compensation. Following this, he escalated his efforts by reaching out to the community through the NextDoor social media platform and contacting a local news outlet, which resulted in increased awareness of the issue.

In follow-up correspondence to Amazon on June 27, Witkin prompted the company to open a request with their tax specialists to investigate the problem. By July 12, Amazon confirmed the overcharge was valid and noted that they would process refunds for the incorrect tax amounts charged to customers.

Amazon’s Acknowledgment and Proactive Refunds

Subsequent inquiries from media outlets led to a swift reaction from Amazon. Within 48 hours, the company began actively issuing refunds to customers in Del Mar Heights. An Amazon spokesperson clarified that the tax issue affected a small subset of customers in the area, and it had been addressed following the recognition of the mistake stemming from an update made by a vendor responsible for determining local tax rates.

Residents expressed their appreciation for Witkin’s efforts on social media, especially upon receiving their refunds. In addition to the refunds, some customers were also surprised to receive gift cards from Amazon as part of the resolution process. However, Amazon has not publicly stated how many customers were impacted by this error.

Background Context

Del Mar Heights shares the 92014 ZIP code with the nearby city of Del Mar. Despite the shared postal code, the two areas have different sales tax rates due to local tax regulations. Del Mar Heights’ current tax rate of 7.75% contrasts with Del Mar’s higher rate of 8.75%, an important distinction that sparked the overbilling confusion.

The community of Del Mar Heights consists of approximately 9,000 residents, compared to around 4,000 residents in Del Mar. As Amazon reflects on this incident, they recognize it emphasizes the importance of maintaining accuracy in local pricing, and the accountability they have towards their customers.

Deeper Dive: News & Info About This Topic

HERE Resources

Additional Resources

• San Diego Union Tribune: Amazon Overcharges in San Diego Neighborhood
• Patch: Amazon Fresh Opens First Store in San Diego County
• Patch: Amazon Closing 2 CA Facilities Affecting Over 300 Workers
• Google Search: Amazon Refunds Del Mar Heights
• Encyclopedia Britannica: Sales Tax