Target.com taxing Disney gift cards

[DISNEYFAN3260]

I just went online to order some Disney cards using Target gift cards I bought on Raise, and I'm being charged sales tax. This has never happened before, and I've ordered as recently as a couple weeks ago. Anyone have this problem before or know what's up? I thought gift cards couldn't be taxed, by law? Obviously I didn't make the purchase since the tax defeats the purpose of using the Raise/Redcard savings!

 

[bumbershoot]

From target.com:

sales tax on giftcards
No sales tax is charged when purchasing GiftCards; however, purchases paid for with GiftCards may be subject to tax.

?

 

[wcw57]

completely illegal to charge tax on a cash swap (which is what a gift card is)...if they charge you a service charge, that's a different story..

 

[MUN]

I just went online to order some Disney cards using Target gift cards I bought on Raise, and I'm being charged sales tax. This has never happened before, and I've ordered as recently as a couple weeks ago. Anyone have this problem before or know what's up? I thought gift cards couldn't be taxed, by law? Obviously I didn't make the purchase since the tax defeats the purpose of using the Raise/Redcard savings!

What did Target.com customer service tell you when you talked with them?

 

[lanejudy]

Hmmm... I wonder if Target's practice of considering Disney gift cards to be "entertainment cards" rather than "gift cards" has anything to do with it? Just a thought, may not be related...

 

[TamaraH]

I just ordered yesterday and I didn't have tax charged??? Maybe just an error?

 

[DISNEYFAN3260]

completely illegal to charge tax on a cash swap (which is what a gift card is)...if they charge you a service charge, that's a different story..

That's what I thought as well. But nope, this is definitely sales tax.

 

[DISNEYFAN3260]

What did Target.com customer service tell you when you talked with them?

Nothing. I very clearly asked if it was a system glitch or policy change, but they avoided the question and just offered to manually discount the tax. I refused the offer and said I would complete my purchase when the issue is resolved - I was hoping that would trigger a more detailed answer, but it didn't.

 

[MUN]

Nothing. I very clearly asked if it was a system glitch or policy change, but they avoided the question and just offered to manually discount the tax. I refused the offer and said I would complete my purchase when the issue is resolved - I was hoping that would trigger a more detailed answer, but it didn't.

Wouldn't subtracting the tax resolve the issue?

 

[MUN]

I just went online to order some Disney cards using Target gift cards I bought on Raise, and I'm being charged sales tax. This has never happened before, and I've ordered as recently as a couple weeks ago. Anyone have this problem before or know what's up? I thought gift cards couldn't be taxed, by law? Obviously I didn't make the purchase since the tax defeats the purpose of using the Raise/Redcard savings!

I just checked out the Target site and there was no sales tax charged on my Disney gift card purchase.

MUN

 

[joannjoe]

Hummm??

 

[Joel0917]

Oddly I had the same thing happen about a week ago. I posted and like others they posted they didn't see sales tax. It did that for me most of the day, but finally later in the day it wasn't there when I went to purchase.
I emailed target and they said the same that they don't charge sales tax on gift cards. But it was there online plain as day.

 

[DISNEYFAN3260]

Oddly I had the same thing happen about a week ago. I posted and like others they posted they didn't see sales tax. It did that for me most of the day, but finally later in the day it wasn't there when I went to purchase.
I emailed target and they said the same that they don't charge sales tax on gift cards. But it was there online plain as day.

Exactly. I did just try it again, and the same thing happened. This time I chatted with a rep who admitted that it must be a system glitch and that I was being charged tax but definitely shouldn't be. He offered to waive the tax after I made the purchase. Since I'm paying with multiple online gift cards from Raise, I wasn't comfortable with being sure that my payment would be properly credited back to my gift card and not sure how I would have had any proof of the issue later. It probably would have been perfectly fine, but I'm in no rush so I'd rather wait this out until they fix the glitch and make the purchase online, as usual. I'm glad to hear I'm not the only one - I was beginning to get paranoid about whether I was being "punished" somehow for using Raise and Redcard to save a few dollars! (Which of course I didn't tell the Target rep about!) LOL

 

[Joel0917]

Just got on line...tried to buy $100 and got charged sales tax. I'll wait as well

 

[tracylmartins]

This also happened to me a few days ago, I added a $100 gift card to my cart and noticed I was being charged tax. I removed the item from my cart and added 2 $50 gift cards and tax wasn't charged. Very strange.

 

[Elix72]

We've had tax added randomly. We just remove it from the cart and try later. We haven't paid tax yet, but it takes patience!

 

[Patsydust]

Ooh! I am glad I have found this thread! I was about to try Raise out myself (never have before but trying to be money savvy this time around!) This is good to be aware of! Thanks! First shopkick and now raise! I love disboards!

 

[bumbershoot]

they avoided the question and just offered to manually discount the tax

This time I chatted with a rep who admitted that it must be a system glitch and that I was being charged tax but definitely shouldn't be. He offered to waive the tax after I made the purchase.

So you had two separate reps tell you they would take care of it, so you aren't charged the tax, and you....said no.

OK.


Reps don't offer things like that unless they KNOW that it's not supposed to be happening, and they are given that ability for a reason. You were told it was a glitch. It obviously doesn't happen to everyone or every time.

Why on earth did you not take them up on this? This is how they are fixing it for now while they wait for the real fix. Just take them up on it.

 

[nancyjo1998]

I just purchased my raise gift cards for target and after multiple attempts to buy Disney gift cards I was able to add the $50 cards to my cart without tax being added. I was limited to buying only 4 so I had to make multiple purchases, but it all worked out. This is not my first time doing this, but it was the first time I had an issue with tax being added on to the gift cards. Try purchasing the $50 cards to see if that helps fix the issue!

 

[DISNEYFAN3260]

So you had two separate reps tell you they would take care of it, so you aren't charged the tax, and you....said no.

OK.


Reps don't offer things like that unless they KNOW that it's not supposed to be happening, and they are given that ability for a reason. You were told it was a glitch. It obviously doesn't happen to everyone or every time.

Why on earth did you not take them up on this? This is how they are fixing it for now while they wait for the real fix. Just take them up on it.

They offered to waive the tax after I paid it. Rather than risk any issues with my gift card payments being properly credited for the tax I paid, I chose to wait for a real fix since I'm in no hurry. I've had other (different) problems with Target customer service in the past, so I'm not too trusting about how they resolve issues. In the same situation I'm sure many people would have proceeded with the transaction, some would not. To each our own.