Kim Kardashian’s clothing brand pays 0,000 to resolve New Jersey tax investigation.

Skims Body, the clothing company founded by Kim Kardashian, has agreed to pay 0,000 to resolve an investigation by the New Jersey Office of Attorney General, which accused the company of improperly collecting sales tax from customers in the state for a five-year period. Under New Jersey law, clothing and footwear intended for human use, including Skims’ products such as underwear and shapewear, are generally exempt from sales tax. However, the attorney general’s office asserted that Skims engaged in “unconscionable business practices” by charging this tax from 2019 to 2024.

The attorney general, Matthew Platkin, emphasized the commitment of his office to protect consumers from unlawful practices, especially during a time when rising prices on essential goods, including clothing and groceries, are a significant concern for residents. The investigation revealed that Skims had collected a sales tax of 6.625%, which applies to most consumer goods but not to clothing covered by the exemption.

The consent order, dated January 16, confirms Skims’ acknowledgment of the mistake in collecting taxes and stipulates that the company will use “best efforts” over the next four years to refund affected customers. Notably, Skims has already remitted the sales tax collected to the New Jersey Division of Taxes, as indicated by the attorney general’s office. Prior to the formal agreement, Skims had begun processing refunds for New Jersey customers who raised concerns about the sales tax charge, as noted in various social media posts.

The apparel brand has garnered significant success and is valued at an estimated billion, appealing primarily to Gen Z and millennial consumers. Skims has rapidly grown in popularity for its inclusive sizing and innovative designs that cater to a diverse market.

Despite the conclusion of this investigation, Skims’ general counsel and legal representatives did not respond to requests for further comment. As the company continues to expand its product offerings and consumer base, its adherence to state tax laws will be closely monitored to prevent any further legal challenges.

This situation highlights the importance of compliance with state tax regulations, particularly for high-profile retail brands in an evolving marketplace. As consumer awareness grows regarding business practices and tax obligations, companies must remain vigilant to maintain their reputation and ensure customer trust.

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