Bolinsky: CT Laws on Gift Cards

While you are out shopping this Christmas season, I want to remind retailers and shoppers that the sale of gift cards and gift certificates are not subject to the Connecticut sales tax or have an expiration date or incur inactivity fees.
• Shoppers who have been charged sales tax when buying gift cards or gift certificates should return to the store with their receipt and ask for a refund. A gift card is the same as a gift of cash; no tax is due until that gift is used
• Gift cards and gift certificates purchased by shoppers in Connecticut cannot have an expiration date or incur inactivity fees. A landmark 2003 Connecticut law made Connecticut one of the first states to provide consumers with important protections in the use of gift cards and gift certificates. In the past, prior to the Connecticut law, consumers would lose money from the value of gift cards and gift certificates due to monthly fees and other charges, and expiration dates.
Taxpayers with questions about the Connecticut sales and use tax can visit the Department of Revenue Services (DRS) website at www.ct.gov/DRS or call 1-800-382-9463 outside the greater Hartford area, or (860) 297-4753 from anywhere.
