In this action, the State sues to recover unpaid taxes from B&H Foto & Electronics Corp. (“B&H” or “Defendant”), which, since 2006, has intentionally underpaid sales tax on millions of dollars in receipts from its sales of cameras and other consumer electronics.

B&H is the largest non-chain photo and video equipment retailer in the United States, with more than $3 billion in sales in 2018. Its large retail store in New York City sells cameras and other electronics to shoppers from around the globe.

B&H proclaims itself to be “a proud, family owned business” that is “built on the pillars of honesty and treating people right” and which puts “principles over profits.” But when it comes to collecting and paying New York state and local sales taxes, B&H has been anything but honest and principled.

For thirteen years, B&H has cheated on New York State sales taxes. During that time, B&H has routinely passed manufacturer (or “vendor”) discounts through to its customers as part of “instant rebate” sales promotion programs offered by manufacturers. Under these arrangements, the manufacturer reimburses B&H for selling advertised products at discounts during periods of time set by the manufacturer. In violation of long-established tax law, B&H never paid tax on these reimbursements.

B&H knew that it should have been paying the tax. B&H has repeatedly and explicitly acknowledged—internally, to outside vendors, and to a competitor—that under New York tax law, it owed sales tax on these reimbursements

https://ag.ny.gov/sites/default/files/2019.11.14_nyag_v.bh-_summons_complaint.pdf