If you aren't reviewing your receipts, you may have missed a new hidden fee some stores have implemented. A Target shopper in Colorado recently went viral on social media after posting her receipt showing a 2.5% PIF "tax" that was then taxed with an additional 2.9% sales tax — and shoppers are demanding answers.
Target has a reputation for great deals and shopping hacks to save consumers money, but this hidden fee has customers casting a suspicious side-eye at the retail giant. Learn all about these fees, and what other stores charge sneak it onto your bill.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
What is a PIF?
PIF stands for "Public Improvement Fee," and while it is sometimes displayed as a tax on receipts, it's not an actual tax but a fee imposed by property owners and developers — which is then subject to sales tax from Colorado.
The name indicates it's for the public, but that is far from the truth. The fee is another way businesses can offset operating costs onto customers to improve their infrastructure.
Are PIFs legal?
Labeling a PIF as a tax might be brushing up on the wrong side of the legality line, but the fees themselves are legal in Colorado — and have been on the books for over 20 years.
Proponents of the fee argue the money is used to keep malls and shopping centers from descending into blight, but customers think building owners should be responsible for maintaining their properties.
Where else could these fees pop up?
Currently, Colorado is the only state using PIFs as described; however, states like Florida have similar setups for "public infrastructure fees" that ultimately achieve the same thing. If major retail chains can offset even more operating costs to customers in Colorado, they will almost certainly do so everywhere they can.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
Bottom line
Checking over your receipts may seem tedious, but it's the only way to know if you're being charged additional fees. Because PIFs are done at a state or local level, they don't have consistent labeling nationally — meaning corporations can just call them something else and tack on the fee to your bill.
If you see a charge you don't understand, you'll have to ask the store to explain it; receipts should not be an esoteric and unexplainable mystery.
If you're outraged over corporate creeping of offsetting business expenses onto customers, remember that companies aren't the only ones who can make money moves so good they feel illegal; you can, too.
More from FinanceBuzz:
- 7 things to do if you’re barely scraping by financially.
- Do you owe the IRS >$10K? Ask this company to help you eliminate your late tax debt.
- 12 legit ways to earn extra cash.
- Learn how you can escape the paycheck-to-paycheck grind.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.