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Double taxation of gift cards

Wowzers! I never realized this, and now it makes me mad.
Say you want to buy someone a $20 gift card in the state of MD (5% sales tax). It will cost you $21 for the gift card with tax. But when your friend goes to redeem it they will only be able to buy $19.05 worth of merchandise because the tax will kick it up to $20. Yes, that's right, both you and your friend are getting taxed on the same merchandise essentially. Unless you're into paying doubles taxes, give cash (or maybe one of those gift credit cards, but I'm not sure how that works or if there is sales tax involved). Of course if you live in Delaware, this doesn't apply to you as there is no sales tax, so buy all the gift cards you want. --Avram


Double taxation is teh_ghey, you can stick it up Condoleeza Rice's penis. Yes, you heard me correctly. Didn't know she had one? Live and learn, live and learn.

Comments

  1. FroggieFebruary 1, 2005 at 8:02 AM

    you don't have to pay sales tax on a gift card. And, unless you can show me a reciept of it ever happening, I won't believe it. I've bought HUNDREDS of gift cards and I've NEVER been charged sales tax.

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