I just got charged tax on Google Play cards. Is that right?

[PaulQ]

I just happen to (finally) find Google Play cards at Target. They charged me tax on the cards. Is that normal? I don't recall paying tax on iTunes cards.

 

[Lanhoj]

That's odd, didn't get taxed at Radio Shack

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[Mac.World]

Why are you bothering to go to a store to get physical cards. You can add money to your account directly from the Play Store. Much simpler then buying cards.

 

[funkylogik]

Why are you bothering to go to a store to get physical cards. You can add money to your account directly from the Play Store. Much simpler then buying cards.

Maybe doesnt have a debit/credit card.
Umm im not sure but dont we pay VAT on playstore purchases using the normal way too?

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[FuzzyB]

Obama taxes everything!

 

[rexxman]

Obama taxes everything!

OP said they got their merchandise from Target, not Obama.

Please don't politicize these forums. If you can't resist, get it right. Congress creates the tax law, not the President.

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[funkylogik]

What about UK???

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[funkylogik]

P.s, anyone who grudges payin tax should live in a shack in the desert

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[Kizzmocat]

P.s, anyone who grudges payin tax should live in a shack in the desert

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Speaking of living in a desert shack, are you on the lamb? Shouldn't you be in jail? Lol, what happened? Did you get you trial yet?

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[funkylogik]

Are you askin out of concern or being a dick?

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[Kevin OQuinn]

Remind me again what the topic of this thread is....

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[Shanicenicolle]

I'm pretty sure we charge tax at best buy too

 

[XChrisX]

Why are you bothering to go to a store to get physical cards. You can add money to your account directly from the Play Store. Much simpler then buying cards.

He's probably planning on gifting these cards. Isn't that the point of these play store cards in the first place?

 

[natehoy]

I just happen to (finally) find Google Play cards at Target. They charged me tax on the cards. Is that normal? I don't recall paying tax on iTunes cards.

Sales tax in the US is a state-by-state thing, so what is taxable in your state will differ from my state. Here in Maine, gift cards of that type are taxable.

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[zapfrog]

It is state by state, here in CT gift cards cannot be taxed.

People really do need to do their research before bringing politics to the forums.

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[Tkbredx]

LOL

 

[PaulQ]

Why are you bothering to go to a store to get physical cards. You can add money to your account directly from the Play Store. Much simpler then buying cards.

Giving as gift to my brother who doesn't want to spend money on apps but still wants them. Thought it would be fun.

 

[Kizzmocat]

Are you askin out of concern or being a dick?

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Just wondering, and kind of being a little bit of a Dick

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[funkylogik]

Easy bro. Go to the 1st post on the 1st page... even ive learnt that

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[KreepyKen]

In the US, you should absolutely NOT be paying sales tax on gift cards. They are not products for sale, merely an alternate form of currency accepted by individual or multiple stores. If you get charged sales tax on the gift card, then get charged sales tax on the item you buy with the gift card, you are essentially being taxed twice on one purchase...double taxation is illegal in this country (unless you're talking about inheritance...in which case double taxation is allowed for some reason).

Getting charged sales tax on a gift card is like going to the bank, asking the teller to break a $20 and only getting $19.50 back because of sales tax.

Let's look at an example: You get a $10 gift card at a store as a gift for Minerva. You get taxed, and have to pay $10.50 (5% rate). Minerva goes to that store, purchases something for $20. Tax is added, so she's paying $21.00. She uses the gift card, and has to pay the balance, which is $11. So the total paid is $21.50 ($10.50 from you and $11.00 from Minerva)...which means that the final tax on that item is $1.50...a 7.5% tax instead of the 5% it should be. That's illegal.

In order to charge tax on the card itself, then the store could only charge tax on the balance of the final sale...meaning that Minerva would take $10 off the top, be left with a $10 charge, to which tax is applied...equalling $10.50...plus the $0.50 you paid on the initial card. Then the tax would even out. BUT the problem with doing it this way is that each state has a different tax rate, so if a gift card is acquired in one state and used in another, then state #1 is getting sales tax for an item sold in another state...and state #2 is missing out on some of the sales tax generated. It's a mess.

So no tax is charged on a gift card. Tax is applied to the final sale so it only gets applied once and goes to the correct state.

So to make a long story short, you need to go to Target and talk to a manager to get your money back.