Is it legal to charge sales tax on the purchase of a gift certificate in California?
Sidonie asked:
Can you please cite your sources. I don’t think it is legal, but I’m having trouble finding a law on it.
A gift card is not the same as a gift. It does not seem logical nor legal to be charged sales tax on the purchase of a gift certificate when the person who uses the gift certificate will also be charged tax.
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Can you please cite your sources. I don’t think it is legal, but I’m having trouble finding a law on it.
A gift card is not the same as a gift. It does not seem logical nor legal to be charged sales tax on the purchase of a gift certificate when the person who uses the gift certificate will also be charged tax.
December 29th, 2009 at 7:19 am
A gift certificate is the same as a gift and sales tax applies. old lady
December 30th, 2009 at 7:16 am
No, the tax is paid when the certificate is used. treadsgirl
December 30th, 2009 at 3:51 pm
No. A gift certificate is money. Sales tax will be charged on purchases made using the gift certificate. Max Hoopla
January 1st, 2010 at 2:00 pm
The tax is not supposed to be collected until the gift certificate is redeemed. Here is a publication that explains. See page 9 and 10.
If the seller collects tax on gift certificates, as long as they pay the money they collected to the state, there is really nothing you can do other than file a complaint. marie