Charged sales tax when buying a gift card?

[Moritsume]

So, I bought a $50 gift card at Wal-Greens about two weeks back, and paid $50 for it. Today I stopped at Gamestop and purchased a similar gift card (same brand but only $25) but they charged me 9% sales tax (I live in Louisiana). So, one store must have messed up. I don't think gift cards should be taxed (they're just a different form of currency) so I'm leaning towards Gamestop, but was curious if anyone knew for sure :O

[Tierbook]

they are normally taxed

[Reg]

So, I bought a $50 gift card at Wal-Greens about two weeks back, and paid $50 for it. Today I stopped at Gamestop and purchased a similar gift card (same brand but only $25) but they charged me 9% sales tax (I live in Louisiana). So, one store must have messed up. I don't think gift cards should be taxed (they're just a different form of currency) so I'm leaning towards Gamestop, but was curious if anyone knew for sure :O

Shouldn't be any sales tax for gift cards as far as I know. Any sales tax would be on the purchase made with the gift card, and you can't get taxed for the same purchase twice.

[Porcell]

You should not be charged sales tax when buying a gift card.

[chrisnumbers]

I wonder if a sale will get taxed again once the card is used on a product.
Make sure you find out from the person you're giving the card to.

[Flatspriest]

If you were charged tax on a gift card, and your particular state doesn't authorize such a tax, then you need to take it up with the store manager, and let him know you are not afraid to back it up by contacting the state revenue service to let them know that the store is charging taxes on a non-taxable item.

[Merope]

I've never been charged sales tax when buying a gift card (I live in VA). Some cards charge an activation fee at the point of sale.

[Moritsume]

Well it wasn't an activation fee, as it clearly shows the sales tax on my receipt. And as I mentioned another store a mile away didn't charge me sales tax on the same gift card. I read online it varies from state to state but most of the topics were from 2+ years ago so I wasn't sure if they were current or not. I didn't feel like making a big deal at the store since it was only an extra 2.25 but if it wasn't supposed to be charged I would like to know.

[Reeve]

You shouldn't be charged sales tax on a gift card.

[Tradewind]

Yeah pretty sure (and not at all surprised) that Gamestop fucked up.

[Bodaway]

Tax is normally applied when the gift card is used, not purchased.

[Flatspriest]

It also depends on what the gift card is for. If it is a game time card, yes, it could very well have a tax on it as some states do charge such fees.

[KCguy]

It varies by Country if I recall.

[DeltrusDisc]

they are normally taxed

Then you've been getting screwed. Gift cards are considered practically cash and thus cannot be taxed.

I'm not at all surprised this happened at Gamestop though. It seems they tend to find whatever way possible to screw people over.

[Dasffion]

It varies by Country if I recall.

It shouldn't. Buying a gift card is like getting a pre-paid credit card for that store. You're not buying any goods you're buying store credit. There's nothing to charge sales tax for.

[DeltrusDisc]

Well it wasn't an activation fee, as it clearly shows the sales tax on my receipt. And as I mentioned another store a mile away didn't charge me sales tax on the same gift card. I read online it varies from state to state but most of the topics were from 2+ years ago so I wasn't sure if they were current or not. I didn't feel like making a big deal at the store since it was only an extra 2.25 but if it wasn't supposed to be charged I would like to know.

I don't suggest letting this blow over.

For all you know, they could be making it look like a sales tax but really it is just $2.25 for each one of those cards sold directly in that store's pockets - which is nothing but illegal. I suggest getting in contact with the authorities - and not using the card.

[Dasffion]

I don't suggest letting this blow over.

For all you know, they could be making it look like a sales tax but really it is just $2.25 for each one of those cards sold directly in that store's pockets - which is nothing but illegal. I suggest getting in contact with the authorities - and not using the card.

Yup, this is pure profit for the store. Go talk to the manager. If they don't refund your money take your receipt to the state comptroller and report them.

[Lucavian]

I don't suggest letting this blow over.

For all you know, they could be making it look like a sales tax but really it is just $2.25 for each one of those cards sold directly in that store's pockets - which is nothing but illegal. I suggest getting in contact with the authorities - and not using the card.

It's not illegal for them to charge you for purchasing one of their cards. In fact Walmart did it for a while but customers complained so they changed it. Basically they were charging 3 cents per card. Why did they do this? Well it prevented people from being horrible and using a gift card to buy a gift card to buy a gift card to buy multiple gift cards etc.. Which costs Walmart money (the cashier spent time checking the person out, held up other customers, the plastic card costs something even if .001 cents).

Also, make sure you didn't buy a credit gift card, i.e. visa gift card. Those cards act like visas and have a price associated to them which does have a sales tax. They aren't gift cards as they will work at any place that accepts visa (or whichever backer).

[Reg]

It's not illegal for them to charge you for purchasing one of their cards. In fact Walmart did it for a while but customers complained so they changed it. Basically they were charging 3 cents per card. Why did they do this? Well it prevented people from being horrible and using a gift card to buy a gift card to buy a gift card to buy multiple gift cards etc.. Which costs Walmart money (the cashier spent time checking the person out, held up other customers, the plastic card costs something even if .001 cents).

Also, make sure you didn't buy a credit gift card, i.e. visa gift card. Those cards act like visas and have a price associated to them which does have a sales tax. They aren't gift cards as they will work at any place that accepts visa (or whichever backer).

There is a difference between an activation fee and sales tax.

[Dedweight]

they are normally taxed

I've never bought a gift card and been charged tax. Buying a 50$ Steam or iTunes gift card at Best Buy costs me 50$ not 50$ and some change.