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News Dec 10, 2013 - 4:21:55 PM


Commissioner Sullivan Advises Shoppers: Don’t Get Taxed When Buying Gift Cards

By Revenue Services Commissioner Kevin B. Sullivan's office





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Hartford, CT - While holiday shoppers scour Connecticut stores looking for the perfect gift, Revenue Services Commissioner Kevin B. Sullivan reminded retailers and shoppers that the sale of gift cards and gift certificates is not subject to the Connecticut sales tax.

Said Commissioner Sullivan, “People are used to the tax commissioner telling them to pay their taxes, but this isn’t your father’s tax department and I don’t want people to pay more tax than their fair share. Retailers that sell gift cards and gift certificates should not charge sales tax on those items.”

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, advised Commissioner Sullivan.

“A gift card is the same as a gift of cash; no tax is due until that gift is used, said Commissioner Sullivan. “When people use those gift cards to purchase taxable items, that is when stores should charge and collect Connecticut sales tax.”

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.




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