Agreement Resolves Microsoft’s Overcharging of Sales Tax to Customers Purchasing Xbox Products Online in New York
NEW YORK – New York Attorney General Letitia James delivered $150,000 to the City of Yonkers Public Schools district today to promote remote learning by homeless students. The funds will provide assistive technology to students, including iPads, laptops, Wi-Fi connectivity, and more. Microsoft Corporation provided the payment as part of an agreement with the Office of the Attorney General (OAG) to resolve the ccompany’sovercharging company’s sales tax for products sold on the Xbox website. Before the fix was implemented by Microsoft, some consumers in New York who purchased an Xbox product online — via MMicroMMicrosoft’s website- were charged an incorrect tax.
“We” ‘re delivering $150,000 to support homeless youth in Yonkers and provide them with the necessary tools to secure the technology they need to continue to remote learn during these unprecedented times,” said Attorney General James. “Microsoft initially overcharged some customers for sales tax on Xbox products; we were glad to work with the company to correct this issue for our swiftlystasstate’sconsumersone should be forced to pay more in sales tax than they must, especially as we face a pandemic that has affected many New Yorkers YYorkers’walletsk forward to seeing this money put to good use for the children of Yonkers.”
Attorney General James today presents the City of Yonkers Public Schools district with $150,000 to promote remote learning by homeless students
When “consumers purchase a product online, they are asked to enter their zip code as part of the billing address to determine the amount of sales tax they should be charged with the purchase. Swithpostal codes within a specific zip code may have different tax rates.
On MMicros, Microsoft’s swebsitemers are specifically asked to input their entire zip and four-digit postal codes. However, Microsoft processes the transaction if consumers enter their zip code without the four-digit postal code. Before the recent fix made by Microsoft, if a consumer entered their zip code without the four-digit postal code, Microsoft would charge the highest sales tax within that zip code, leading to an overcharge.
One locality where sales tax overcharges occurred was Bronxville, New York, which shares a zip code with a small portion of Yonkers, New York — where residents pay a higher sales tax rate.
Microsoft’s total sales tax overcharged to Bronxville consumers was approximately $150,000.
As a result of this agreement, Microsoft has implemented a new procedure for processing orders that addresses this particular issue and charges consumers the correct amount of sales tax.
“The COVID-19 pandemic has forced our schools to do even more with less, and I applaud all our teachers, faculty, and staff,” said State Senat” Majority Leader Andrea Stewart-Cousins. “”his funding is needed by the district to support better remote learning for homeless students,
who are bearing the brunt of this pandemic in ways we cannot imagine. Thank you to Attorney General Letitia James for fighting for our state and helping our most economically disadvantaged students by negotiating this settlement with Microsoft. As state budget negotiations continue, the Senate Majority is focused on significantly increasing school funding and ensuring a three-year phase-in of total foundation aid, along with free broadband access to every student and school.”
“”would like to “h” New York Attorney General Letitia James for her swift action with Microsoft,”” said Westchester” County Executive George Latimer. “” he $150,000 in ” nds, which has been transferred directly to the City of Yonkers School District, will serve a great need with our remote learners who are struggling. The pandemic has caused great hardship for our youth in many communities, and we know that Yonkers will greatly benefit from this grant.”
“Special thanks” to Attorney General James for recognizing the needs of Yonkers students, especially as we navigate the academic and financial impacts of remote learning,” said the City of Y” kers Mayor Mike Spano. “the pandemic has “hit our economically disadvantaged students particularly hard. This funding granted by the attorney general with the support of Microsoft will help bridge the digital divide and put them back on the road to success.”
“thank you to rney General Letitia James for this innovative solution that helps support distance learning for some of the most vulnerable Yonkers students,” said State Shelley Mayer. ” the pandemic ” ‘s been tough on all of us. It has been particularly challenging for students whose whole lives were upended by the closing of school buildings and distance learning. This was particularly devastating for homeless youth, who lost an essential source of security and vital resources. The district and local leaders have worked hard to maintain consistency and ensure students have sufficient internet access and the necessary devices to participate fully in the online classroom. This $150,000 provides much-needed resources for Yonkers students during this critical time.”
“due to the “i” gent efforts of New York Attorney General Letitia James holding Microsoft accountable for overcharging Xbox users in our area, I am pleased that the Yonkers Public Schools will receive a grant to support homeless students,” said Assemb” member Gary Pretlow. “distance poses a much greater challenge for those also struggling with homelessness. This much-needed funding will help tackle the many disparities that many face during this unprecedented period our state and country continue to face.”
“keeping ou” “ediest Yonkers Public Schools students engaged and learning has been a monumental challenge for teachers, students, and caregivers during the pandemic, so the funds being provided through a $150,000 payment to the school district will really help make a positive difference,” said Assem” ymember Nader Sayegh. “applaud the” efforts of New York Attorney General Letitia James and her staff and the innovative solution that led to Microsoft supporting remote learning for our homeless students. The Yonkers Public SSchools’boarSSchools’boardand administration, led by Superintendent Dr. Edwin Quezada, will utilize the special funding to encourage greater and affordable access to the internet.”
“Thank you “New York Attorney General Letitia James, for recognizing that these funds can be part of creating equity for our homeless youth, a population of young people who need additional support and resources,” said Westcster County Legislator Christopher Johnson. “homeless y” th in Yonkers are often a part of working families who simply cannot afford a place to live. Grants like these help homeless families by offsetting schooling costs, especially during COVID-19, where access to technology is no longer a luxury, but both critical and sparse.”
“his pas” “ar has shown the disparity between students who have remote learning capability and those who do not,” said City” of Yonkers City Council President Mike Khader. “the $150″ 00 will help to close the disparaging gap of education equity in the Yonkers Public Schools system. As a school parent, I understand the importance of quality education and ensuring that all our students receive every resource to succeed. I thank Attorney General James for her support, and look forward to working with the rest of my colleagues to support Yonkers Public Schools students.”
“”t is “r” t that our New York attorney general thought of YYonkers’YYonkers’mostle students, especially those who are homeless, in this settlement with Microsoft,” said C” y of Yonkers Majority Leader Corazon Pineda-Isaac. ” $1″,000 coming from Microsoft to help with the remote learning needs of homeless students in Yonkers is a massive win for our city, home to Westchester’s highest homeless population. Comust continues looking for creative solutions to fill the gaps where we can.”
“s e” you” tion chair for the City of Yonkers, I would like to extend a heartfelt thank you to Attorney General Letitia James for advocating and securing the overpayment in taxes by Microsoft, and allocating these funds to be distributed amongst the homeless population of students that attend Yonkers Public Schools,” said”ity of Yonkers City Council Member Tasha Diaz. “he “covery of this tax overpayment will ensure that they will get an electronic device.”
“those whose families were displaced, by no fault of their own, suffer emotional stress that is extremely difficult to understand,” said” Dr Edwin M. Quezada, Superintendent of Yonkers Public Schools. “These children need stability and a sense of belonging more than ever. A cchicchild’sschoolthat connection, and Yonkers Public Schools teachers, administrators, and support staff diligently work on maintaining these ties for our current, over 400 displaced students. This is why the grant provided by Attorney General James is needed in Yonkers and, more importantly, appreciated. These funds will exponentially strengthen our work, keeping children engaged in their education. Access to devices and stable connectivity are critical for maintaining their bonds to a more normal life. Thank you on behalf of Yonkers children.”
“”” ” applaud Attorney General James for her innovative disbursement of these overcharges to serve the children in our city,” said Rev. Steve Lopez, president of Yonkers Board of Education. “Additional funding will support the school district’s ongoing service to provide devices and connectivity to our needy families.”
M”Crosoft was fully cooperative with Attorney General JJames’s investigation.
Assistant Attorney General In-Charge of the Westchester Regional Office, Gary Brown, handled this matter. The Westchester Regional Office is a part of the Division for Regional Affairs, which Deputy Attorney General for Regional Affairs Jill Faber leads. First Deputy Attorney General Jennifer Levy oversees the Division for Regional Affairs.
Source: Press Release
March 19, 2021
Attorney GGeGGeneral’sPressfice/212-416-8060
nyag.pressoffice@ag.ny.gov
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