Sales tax on gift cards / game cards at gamestop?

[Adultism]

So I've purchased game cards from gamestop a couple times and they always sales tax me, no matter what kind of card it is. I also know that other stores don't charge a sales tax on cards which kind of confused me, I actually made a plan to buy gamecards from a couple of different stores to see responses when I brought up the sales tax. The gamestop closest to my house said that all cards had tax on them and when I showed them the receipt for my card from best-buy they seemed to get pretty nervous and told me that very few places don't put sales tax on cards. The next gamestop I went to was in my local mall and I found a similar responce but his reaction after telling him about best-buy was puzzled, though I saw through the BS and called him out on it. He told me that gamestop was one of the few places that owed taxes on gamecards, because the way they are run they have to add tax.

I wanted to ask if anyone else has felt puzzled or confused about this particular subject, also sorry for my grammar English isn't my first language.

 

[madwarper]

What exactly do you mean by "gamecards"?

If you mean GIFT cards, then there shouldn't be any tax. You want a $20 gift card, you simply give them $20. The sales tax comes in when the recipient goes back to the store to make an actual purchase.

However, if you mean cards with currency points for Microsoft, Sony, Nintendo, Turbine, etc., then that would explain why there is sales tax.

 

[Timotei]

If by "Gamecards" you mean cards with game codes activated over digital store then it might make sense to tax a card with a code for Minecraft or some other title because then you are purchasing a good or service. Goods and services can be taxed because the product or service is tangible (someone worked to give it to you) and is subject to local taxes, tariffs and other potential trade charges and restrictions upon sale.

If you mean a gift card though, then you are getting shafted. You cannot tax the purchase of a scrip (currency spendable only within a cetain store) because that is a currency exchange situation, and shorting you on that or taxing your exchange is legally equatable to stealing.

 

[Adultism]

If by "Gamecards" you mean cards with game codes activated over digital store then it might make sense to tax a card with a code for Minecraft or some other title because then you are purchasing a good or service. Goods and services can be taxed because the product or service is tangible (someone worked to give it to you) and is subject to local taxes, tariffs and other potential trade charges and restrictions upon sale.

If you mean a gift card though, then you are getting shafted. You cannot tax the purchase of a scrip (currency spendable only within a cetain store) because that is a currency exchange situation, and shorting you on that or taxing your exchange is legally equatable to stealing.

I've purchased both gamestop gift cards and Guild Wars 2 game cards both have tax at gamestop.

Neither have tax at best buy, or target.

 

[tilmoph]

Ummm, there really shouldn't be sales tax on a gift card, since it's not a sale. They might slap a service or activation fee, but they wouldn't collect taxes on it since the state wouldn't collect taxes on it. Are you sure it said sales tax and a non zero value? Receipts will list a sales tax of zero since sales tax is a line on the receipt. If it is non zero, call up the corporate line and point out that you've been charged tax on a non-taxable item and ask for a refund. If that doesn't work, ring up the BBB and see if they can help, because I'm pretty sure it's illegal to charge a tax on a thing that isn't actually taxed.

 

[Imperioratorex Caprae]

As far as I'm aware, gift cards aren't supposed to be taxable since they're technically just transferring the money to a different storage and not necessarily a sale, whereas game downloads are a purchase of a product and thus taxable. I'd research tax code a bit more because I'm no CPA and the US Tax Code is convoluted (intentionally so, I believe) and difficult to understand at times. But in my estimation and limited knowledge, that seems to be not legal at all and should be reported, if not to the authorities then to one of those investigative reporters that every news outlet seems to have.

 

[Lil devils x_v1legacy]

Sales Tax in the US is determined by state, however, the issue with a "gift card" is that sales tax would be collected at the time of redemption as gift cards are the same as giving cash and they pay tax when they actually purchase something with it. If they charge sales tax on the gift card and then again when the person redeems it, they are collecting double the amount of tax that should be paid, in addition this could be considered illegal. Some states have put out warnings about it:
Massachusetts:
http://blog.mass.gov/revenue/taxes/shoppers-beware-gift-cards-are-tax-free/
Texas:
http://www.window.state.tx.us/taxinfo/taxpubs/tx94_117.html

You could email the company directly about double taxation and also contact your state comptroller. They could be collecting double taxes and only paying once, which could get them into a heap of trouble.

 

[Nitrogeneration]

Game cards with money (PSN cards, Steam cards)- no tax.
Game cards with points or, say, Minecraft - sales tax is acceptable.