*Update post #16 I'm so annoyed, was charged tax for a gift card.

[ThisIsTheYear]

My husband likes to get massages at this little place in the mall. I went today to get him a gift card. I don't think the man spoke English. When I bought it, he wrote the amount on the certificate and showed it to me for my approval. Then he wrang it up and charged tax. I asked, "there's tax on gift cards"? Then he showed me his tax chart. Since I was with my 3 year old and she was acting up, I didn't argue but I really should have even though I think it would have went no where. I told my DH to not allow them to charge tax when he goes in, but I don't think that he would. Should I let it go, contact my cc company..? It was only $2.80 but I'm annoyed.

 

[DisneyStarWisher]

I don't have any advice, but I would be annoyed too!

 

[usnuzuloose]

I have never heard of that. Look up in your state and see if they require tax on a gc. That seems really odd.

 

[ThisIsTheYear]

I'm in NJ, gc's are not taxable.

 

[wishicouldgomoreofte]

They charge sales tax on gym monthly membership payments, which I think is wrong, but apparently required by the state! You pay sales tax to buy weights at a store, it is a product, merchandise. But a gym membership is not merchandise or a product, and does not seem like it should be required to charge sales tax.
Anyone else have to pay sales tax on their YMCA or Curves or whatever membership?

I think the sales tax on the gift card sounds wrong too.

 

[Iowajes]

I would consider calling the state Department of Taxation.

If you are being wrongly charged sales tax, and it is more than just a simple mistake (which the business should rectify)- it is generally classified as fraud. Especially if the business owner isn't then going and sending that tax into the state, but keeping it as profit!

 

[susanrose73]

They charge sales tax on gym monthly membership payments, which I think is wrong, but apparently required by the state! You pay sales tax to buy weights at a store, it is a product, merchandise. But a gym membership is not merchandise or a product, and does not seem like it should be required to charge sales tax.
Anyone else have to pay sales tax on their YMCA or Curves or whatever membership?

I think the sales tax on the gift card sounds wrong too.

About a year ago I started getting taxed on my Planet Fitness gym membership. Before that I was not.

 

[BigAlsGal]

Just make sure it WAS tax. I know to activate a visa gift card it has a fee to charge and activate it. So if you buy a $50 gift card it will cost you $53. That's why I refuse to get them.

Oh nvm. I see it was a small business you got it from. Yeah that's weird. I'd bet money they charge tax on services and pocket the extra money

 

[SUSIEQ]

I'd bet money they charge tax on services and pocket the extra money

That's what I was thinking.

 

[Kathryn Merteuil]

I am guessing that it could vary by state. I have purchased gift cards before and was not charged sales tax. It is my assumption that the sales tax is collected when the gift card is used.

Or it could be the person ringing you up didn't know what they were doing.

 

[jmmess]

Did you pay for a specific service? Say a full body massage and therefore he included the tax? Services here are charged a tax (agree GCs are not), but perhaps he included that in the cost of the service?

 

[starry_solo]

I know I'm charged tax on a Tracfone card in CA.

 

[Eeyore's My Favorite]

We own a business in Florida & when a gift card or gift certificate is purchased, you do not charge tax. Tax is charged when a purchase is made with the card/certificate.

 

[ThisIsTheYear]

Did you pay for a specific service? Say a full body massage and therefore he included the tax? Services here are charged a tax (agree GCs are not), but perhaps he included that in the cost of the service?

No, I just asked for a $40 gift card.

 

[ThisIsTheYear]

My husband said they tell him they 'won't charge him tax if he pays with cash'. He never carries cash though. I'm not sure if they just want him to think that because they don't want to pay the credit card fees, or if they're REALLY shady.
I originally wanted to buy a mall gift card because I had a feeling with this place, but no one was at the counter. I'm going to wait to see what they tell my husband (maybe even go with him - haha), then I'll try the Board of Taxation like a pp suggested.

 

[ThisIsTheYear]

*Update. My DH went there about 2 weeks ago and used 1/2 of the gift card and they did not 'charge' tax.
HOWEVER - he went there today and the place was closed up! He had to search for the mall customer service which is now in the mall offices (which is why I couldn't find them in the first place) and they said there was nothing they could do. That's what he figured, but hey - worth a shot. I KNEW I should have bought a mall gift card. Oh well, it could have been a lot more.