Alert: New Jersey gift cards - still a developing issue

Tax Insights

The New Jersey data collection provisions for the sale of stored value cards is an issue that will not go away quietly, as proven by the developments over the past few weeks on the legislative, administrative and business fronts. As gift card companies are leaving the state and the Department of the Treasury is advising people to know "the Real Story on Gift Cards," the Legislature is pushing through repeal legislation in an attempt to go back to the way things were. This is very interesting since New Jersey is one of the only states that have not only repealed their gift card exemption but it also has the shortest dormancy period for gift cards among the states.

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