Gift Certificates and cards are among the most popular presents to give and receive around this time of the year. But don’t pay more for the cards than you have to. DOR is reminding shoppers that gift cards are the same as a gift of cash and are not subject to the 6.25% Massachusetts sales tax. Retailers should not be charging any taxes on these items.
However, in some instances a sales tax may be due when the gift card is redeemed and an item is purchased that is taxable. For example, let’s say you buy a sweater with your $50 gift card, no tax is due, but if you buy a toaster, than the tax will be collected on the sales price. Be aware that the tax only applies to the actual amount that you pay after deducting store discounts or coupons, not the sales price listed on the taxable item.
There are other good things to know about buying and using gift certificates from the Attorney General’s office. Please visit www.mass.gov/ago/consumer-resources/consumer-information/retail-rights/gift-cards-and-certificates/ to learn more.
Happy holidays and smart shopping!
Mission Accomplished posted on Sep 15
They are two dogs with a very unique trick. Meet Fillmore and Max, a canine pair trained specifically to sniff out tobacco. The Massachusetts Department of Revenue recently teamed up with Altria representatives and their tobacco sniffing dogs for a two-day tobacco drive in an …Continue Reading Mission Accomplished
It’s All About Plain Talk posted on Aug 13
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Take a survey — Your feedback impacts how DOR does business posted on Aug 4
The Department of Revenue wants to hear from taxpayers and anyone who is advocating for taxpayers! DOR has just unveiled its new “How Are We Doing?” survey page, and we’d like you to report in on your customer service experience. This page was created to …Continue Reading Take a survey — Your feedback impacts how DOR does business