This is coming a little late for July 4th but here’s an interesting patriotic factoid that perhaps you may not have known: some states have statutes that exempt America flags (and their own state flags) from their sales tax requirement. According to an internet article that I found on the subject there are ten states that preclude sales tax on the retail sale of flags and four with statutes that apply the exemption in narrower situations.

I didn’t research the legislative history of these statutes but the rational for them seems kinda obvious – encourage patriotism. However, also in the “didn’t know this category” are some flag retailers. For example, my home state, Pennsylvania, has a statute that exempts American flags from sales tax. See 72 Pa. Stat. § 7204(32). Nonetheless it is not uncommon, especially in a small retailer, to purchase a flag in Pennsylvania and be charged sales tax. [Incidentally, the Pennsylvania statute that creates the sales tax exemption for flags also takes dental floss off the hook for sales tax. Id. at sub-§ (4).]

I know what you are thinking. This sounds like a star spangled class action suit against any retailer that has been charging 6% more for flags than allowed by law. While the average flag purchaser’s damages would be under a buck, when has that ever been an impediment to a consumer class action? Ridiculous consumer class actions are as American as hot dogs. So imagine a class action about flags. It would be the Yankee Doodle of lawsuits. [Actually, it might be sorta complicated since the retailer probably paid the tax to the state, so maybe the retailer has a right to a refund, which could fund the damages to the consumer. But attorney’s fees would still be owed. Well, whatever.]

So if you are buying a flag and live in Connecticut, Florida, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, West Virginia or Wisconsin check your receipt.