Published
June 30, 2026
Allegations Only · No Settlement Yet
This article describes a class action complaint. The statements below are unproven allegations. Costco has not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.
What Is This About?
A proposed class action accuses Costco of over-collecting Missouri sales tax from Executive Members. The complaint, Annunziata v. Costco Wholesale Corporation (Cause No. 26SL-CC03212, Circuit Court of St. Louis County, Missouri; now proceeding in the U.S. District Court for the Eastern District of Missouri as No. 4:26-cv-00853-MAL), was filed on April 20, 2026 on behalf of a proposed class of Missouri shoppers.The named plaintiff alleges that when a customer redeems a Costco Executive Reward at checkout, Costco calculates sales tax on the full, pre-discount retail price rather than on the lower amount the customer actually pays after the reward is applied. The complaint alleges this practice collects more money under the label of "sales tax" than Missouri law allows, in violation of Mo. Rev. Stat. § 144.083.5 and the Missouri Merchandising Practices Act. Costco's appointed counsel has entered an appearance, and the allegations are unproven.
Status
Complaint Filed · April 20, 2026
Annunziata v. Costco · St. Louis County, Mo. (26SL-CC03212) / E.D. Mo. (4:26-cv-00853-MAL)
Core Allegation
Sales tax charged on the full price before the Executive Rewards discount
Alleged to violate Mo. Rev. Stat. § 144.083.5 and the Missouri Merchandising Practices Act
Proposed Class
Missouri Costco shoppers who used Executive Rewards or another pricing discount
Purchases in the five years before the complaint was filed
Can I Claim?
No — nothing to claim yet
No settlement, no fund, no claim form; class not certified
How Costco Executive Rewards Work
Costco's Executive Membership is a premium tier that the complaint says costs about $120 a year (or $130 in some locations) and earns members an annual 2% reward on qualified Costco purchases. Members receive an annual Executive Reward certificate, calculated as 2% of eligible purchases during the membership year up to a maximum, that can be redeemed toward a future purchase at a Costco warehouse.When an Executive Member redeems a reward at checkout, the reward amount is applied as a discount to that transaction. According to the complaint, Costco itself treats Executive Rewards earned on purchases as "pricing discounts." The dispute is about how sales tax is calculated once that discount is applied.
Why the Plaintiff Says the Tax Is Over-Collected
The complaint centers on Mo. Rev. Stat. § 144.083.5, which provides that sales tax "shall only apply to the sales price paid by the final purchaser and not to any off-invoice discounts or other pricing discounts or mechanisms." The plaintiff argues that a redeemed Executive Reward is exactly this kind of pricing discount, so the tax should be figured on the reduced price the customer actually pays.Instead, the complaint alleges, Costco charges sales tax on the full retail price before the reward discount is subtracted, and does not reduce the tax after the discount is applied. The complaint also points to Missouri Department of Revenue regulations on store coupons and seller rebates offered at the time of sale, which it says should keep the discounted amount out of the taxable base. The plaintiff frames the over-collected difference as money taken from consumers "under the guise of tax." Costco has not yet responded to the merits of these allegations, which remain unproven.
The Plaintiff's Example Transaction
According to the complaint, on August 23, 2025 the named plaintiff made a purchase at a Costco in University City, Missouri and redeemed Executive Rewards worth $172.98. She alleges she was charged sales tax at a combined rate of about 10.238% on the full sale amount of $279.99 — roughly $28.67 — calculated before the $172.98 reward discount was applied, and that the tax was not reduced after the discount. The complaint uses this transaction to illustrate the practice it says affected Missouri Executive Members class-wide. This account reflects the plaintiff's allegations.Who Is Covered by the Proposed Class?
The complaint seeks to certify a class defined, in substance, as:All Missouri residents who, within the five years before the complaint was filed, purchased products or tangible personal property from a Costco retail location in Missouri for personal, family, or household use, where Executive Rewards or another pricing discount was part of the transaction. The complaint excludes Costco and its affiliates, class counsel and their families, and the assigned judge and court staff.
The complaint estimates the class includes thousands of Missouri shoppers and says members can be identified from Costco's own transaction records. No class has been certified yet, so the definition and eligibility could change as the case proceeds — or the case could be dismissed.
What the Lawsuit Seeks
The complaint brings claims for violation of the Missouri Merchandising Practices Act, unjust enrichment, negligence, and money had and received, and asks the court to:• Certify the case as a class action and appoint the named plaintiff's firms as class counsel.
• Award compensatory damages and restitution, including a refund of the excess amounts collected as "sales tax."
• Enter declaratory and injunctive relief barring Costco from charging sales tax on the discounted portion of Executive Rewards purchases going forward.
• Award pre- and post-judgment interest, attorneys' fees, and costs.
All of these are requests for relief tied to unproven allegations; Costco has not been found to have done anything unlawful, and no money has been awarded.
Is There a Settlement or Claim Form?
No. This is a freshly filed lawsuit, not a settlement.That means:
• There is no settlement fund.
• There is no claim form.
• There is no payout and no deadline to act.
For any money to be distributed, the case would first have to survive Costco's expected motions, then win class certification, and then either settle or prevail — a process that can take years and may not succeed. Be cautious of any website that claims you can "file a claim" against Costco over Missouri sales tax today. If a class is ever certified and a settlement or judgment results, a formal process with its own eligibility rules and deadlines would be announced separately.
Related Costco Cases
This is not the only consumer case targeting Costco's pricing and charges. For other active matters, see our coverage of the Costco tariff-refund overcharge lawsuit and the Costco tortelloni labeling class action.Frequently Asked Questions
Is there a Costco sales-tax settlement or claim form?
No. This is a newly filed class action complaint, not a settlement. There is no settlement fund, no claim form, and no payout. Costco has not been found liable, no class has been certified, and there is nothing to claim at this time.What does the Costco Executive Rewards lawsuit allege?
That when a Missouri customer redeems a Costco Executive Reward as a discount, Costco calculates and collects sales tax on the full pre-discount retail price instead of the lower price the customer actually pays, allegedly over-collecting tax in violation of Mo. Rev. Stat. § 144.083.5 and the Missouri Merchandising Practices Act. These are unproven allegations.Who could be covered by the proposed class?
Missouri residents who, within the five years before the complaint was filed, bought products from a Costco location in Missouri for personal, family, or household use where Executive Rewards or another pricing discount was part of the transaction. No class has been certified, so coverage could change as the case proceeds — or the case could be dismissed.What is a Costco Executive Reward?
Costco's Executive Membership is a premium tier that earns members an annual 2% reward on qualified purchases, issued as a certificate that can be redeemed toward a future purchase at Costco. The complaint alleges Costco treats the redeemed reward as a pricing discount but still charges sales tax as if the discount had not been applied.Sources
• Class Action Petition for Damages, Annunziata v. Costco Wholesale Corporation, Cause No. 26SL-CC03212 (Cir. Ct. St. Louis County, Mo., filed Apr. 20, 2026).• Docket, Annunziata v. Costco Wholesale Corporation, No. 4:26-cv-00853-MAL (E.D. Mo.).
• Missouri Revised Statutes — § 144.083.5 (sales tax on pricing discounts), § 144.010 (definitions), and § 407.020 (Missouri Merchandising Practices Act).
Free settlement alerts
Get notified when new class actions open to claims
Join thousands of readers who get the latest class action settlements you may qualify for — delivered straight to your inbox.
For more class actions keep scrolling below.
Status
Complaint Filed — Allegations Only
Case Title
Annunziata v. Costco Wholesale Corporation
Case Number
26SL-CC03212 (St. Louis County) / 4:26-cv-00853-MAL (E.D. Mo.)
Court
Cir. Ct. St. Louis County, Mo. / U.S. District Court, E.D. Missouri
Date Filed
April 20, 2026
Defendants
Costco Wholesale Corporation; Costco Wholesale Membership, Inc.
Claims
Missouri Merchandising Practices Act; unjust enrichment; negligence; money had and received
