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6th Ave. Electronicsdouble tax

I went to 6th Ave. Electronics today to return a defective camera. The camera was still under warranty and I had all of the original packaging, as well as my receipts and warranty paperwork. They told me they could do a "swap out" since it was still under warranty, they could give me an identical camera and then, the existing warranty would be null and void. No problem. No we go to cashier, and I was going to purchase a new warranty, well once the total came up (Warranty $40.) it was over $55. I asked what the extra $15. was for, and they told me they had to charge me tax again on the camera. Their store policy is, if you return an item, they need to charge tax again! WHAT? No way! So the girl calls the manager over who literally stood there with this look on his face, like HUH? He had no clue what the store policy was or any idea whatsoever, as to how to handle this. Needless to say, I raised a major stink and wanted to know why I had to pay tax? I already paid tax on the original camera purchase, and now they are double taxing me? Ludicrous! Again, needless to say, I DID NOT pay tax on the replacement camera. Never have I heard of having to pay tax on an even exchange. Especially with the receipt. Below is something I found on the internet regarding WalMart trying to do the same in Connecticut. Of course my purchase was in NJ, but still, according the the paragraph below, they should not be re-charging tax.

The law seems clear:

"When a retailer exchanges or replaces taxable merchandise with identical or similar merchandise for no additional consideration because of a defect or because the item is otherwise unsatisfactory to the customer, no additional sales tax is due from the customer regardless of whether the customer is unable to produce the original sales receipt or other verification of the date and place of purchase, and/or the exchange or replacement takes place more than 90 days after the original retail sale, " the state Department of Revenue Services states in its 2005 ruling.

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