[jgvarriano]

Today, I bought a $20 gift card at Oh My Sweet Cakes in Paddock Square - Brownwood. I was charge an extra 3% (credit card sale - I can live with that.), which I saw no sign indicating they did that, PLUS an extra $1.40 sale tax. I asked the young man that when the recipient of the gift card used the card, would they be charged a sales tax a second time. He said, "yes." I told him that he can't charge me sales tax, but he said it's like an activation fee.
I went home and look up sales tax on gift cards in the state of Florida. Law 12A-1.089 states "The sale of a gift certificate is not taxable."
I haven't decided yet if I'm going back to get my $1.40. It may not be worth my time.

[fdpaq0580]

Originally Posted by jgvarriano

Today, I bought a $20 gift card at Oh My Sweet Cakes in Paddock Square - Brownwood. I was charge an extra 3% (credit card sale - I can live with that.), which I saw no sign indicating they did that, PLUS an extra $1.40 sale tax. I asked the young man that when the recipient of the gift card used the card, would they be charged a sales tax a second time. He said, "yes." I told him that he can't charge me sales tax, but he said it's like an activation fee.
I went home and look up sales tax on gift cards in the state of Florida. Law 12A-1.089 states "The sale of a gift certificate is not taxable."
I haven't decided yet if I'm going back to get my $1.40. It may not be worth my time.

Please do. An "activation fee" should be labeled as such, if not part of the purchase price, not TAX. My guess is they do it all the time (and likely pocket the $). Make sure you speak wit a manager and notify BBB. It sounds like fraud an they should know better. Small time thieves figure they can get away with it simply because " it's not worth the trouble" to pursue.

[ElDiabloJoe]

Originally Posted by jgvarriano

Today, I bought a $20 gift card at Oh My Sweet Cakes in Paddock Square - Brownwood. I was charge an extra 3% (credit card sale - I can live with that.), which I saw no sign indicating they did that, PLUS an extra $1.40 sale tax. I asked the young man that when the recipient of the gift card used the card, would they be charged a sales tax a second time. He said, "yes." I told him that he can't charge me sales tax, but he said it's like an activation fee.
I went home and look up sales tax on gift cards in the state of Florida. Law 12A-1.089 states "The sale of a gift certificate is not taxable."
I haven't decided yet if I'm going back to get my $1.40. It may not be worth my time.

Absolutely go back. I lived in a state that did not tax to-go orders, but did tax if you dined in. I bought something from a bakery one morning on my way to work. This bakery was located in an extremely well-to-do area called Laguna Beach, CA. The well known bakery had been there for many years, well over a decade.

My purchase was charged sales tax. When I questioned it, the owner/manager said to me, "My accountant said to just charge everything and everyone sales tax, it is easier that way." Easier, but illegal! I never stopped at that bakery ever again.

Since I drove by there every day during the work week, and often stopped to pick up something to eat on the way in, I wonder how much in years of profit he lost by charging me sales tax that one time. Probably got an extra fifty cents out of me in sales tax, and lost about $50 worth of profit.

Place is still there though, it is beloved by the community and tourists who apparently do not notice or care about the extra charge.

[Bill14564]

Originally Posted by fdpaq0580

Please do. An "activation fee" should be labeled as such, if not part of the purchase price, not TAX. My guess is they do it all the time (and likely pocket the $). Make sure you speak wit a manager and notify BBB. It sounds like fraud an they should know better. Small time thieves figure they can get away with it simply because " it's not worth the trouble" to pursue.

Or maybe...

The register was not programmed (or programmed correctly) for gift cards. The employee at the register simply rings in a $20 purchase and the register does what it does - in this case it applied sales tax like it does for every other $20 purchase. No attempt to deceive, no intentional fraud, no theft, just a simple error that could be pointed out and possibly corrected with a ten minute visit to the store.

Talk with a manager at the store and see if they will correct the mistake. If they refuse to make it right then follow up with the county. It isn't that you need the $1.40 or that it's worth your time, it's just the right thing to do.

[retiredguy123]

Personally, I don't think it is a mistake. They are stealing from customers. I would never have paid tax on a gift card in the first place. I will bet that they have been told this by other customers.

[Bill14564]

Originally Posted by retiredguy123

Personally, I don't think it is a mistake. They are stealing from customers. I would never have paid tax on a gift card in the first place. I will bet that they have been told this by other customers.

So the register records the $1.40 as tax then the business opens the record to delete any mention of the $1.40? Or they change $1.40 in tax to a sale of $1.31 and tax of $0.09? Sure, either one is possible but the accountant and/or the state should have serious questions about it.

[retiredguy123]

This should be reported to the state. It is a crime. I'll bet you a dollar that the business did not send the $1.40 to the state.

A few years ago, a friend of mine was offered a 7 percent discount on a $10,000 diamond ring from a local, "reputable" jeweler if he would provide an out-of-state address. The jeweler said that he would send an empty box to the out-of-state address, and claim that he had sold the ring to an out-of-state customer. Apparently, Florida doesn't do much enforcement of their sales tax laws.

[fdpaq0580]

Originally Posted by Bill14564

Or maybe...

The register was not programmed (or programmed correctly) for gift cards. The employee at the register simply rings in a $20 purchase and the register does what it does - in this case it applied sales tax like it does for every other $20 purchase. No attempt to deceive, no intentional fraud, no theft, just a simple error that could be pointed out and possibly corrected with a ten minute visit to the store.

Talk with a manager at the store and see if they will correct the mistake. If they refuse to make it right then follow up with the county. It isn't that you need the $1.40 or that it's worth your time, it's just the right thing to do.

Or, maybe not. Read ElDiabloJoe again. Accountant knew it was wrong and donut shop owner knew it was wrong but for their convenience they advised and chose fraud. A lot of small thefts add up.

[Stu from NYC]

Originally Posted by fdpaq0580

Or, maybe not. Read ElDiabloJoe again. Accountant knew it was wrong and donut shop owner knew it was wrong but for their convenience they advised and chose fraud. A lot of small thefts add up.

I was thinking the same thing

[Bill14564]

Originally Posted by fdpaq0580

Or, maybe not. Read ElDiabloJoe again. Accountant knew it was wrong and donut shop owner knew it was wrong but for their convenience they advised and chose fraud. A lot of small thefts add up.

Originally Posted by Stu from NYC

I was thinking the same thing

Certainly possible but I would give the benefit of the doubt until demonstrated otherwise.

[retiredguy123]

Originally Posted by Bill14564

Certainly possible but I would give the benefit of the doubt until demonstrated otherwise.

It is still a crime even if the business owner did not know the law.

[Bill14564]

Originally Posted by retiredguy123

It is still a crime even if the business owner did not know the law.

Ridiculous position to take. But simple enough, don’t shop there.

[fdpaq0580]

Originally Posted by Bill14564

Ridiculous position to take. But simple enough, don’t shop there.

Someone got "hurt" whether intentional or not. The responsible party needs to be corrected so it won't happen again and money refunded, and a notice at the register where customers can see it might be nice, too.

And, I won't shop there. Thanks for the suggestion.

[Bill14564]

Originally Posted by fdpaq0580

Someone got "hurt" whether intentional or not. The responsible party needs to be corrected so it won't happen again and money refunded, and a notice at the register where customers can see it might be nice, too.

And, I won't shop there. Thanks for the suggestion.

A big red letter too? Ridiculous. Correct the mistake and move on.

[retiredguy123]

Originally Posted by Bill14564

A big red letter too? Ridiculous. Correct the mistake and move on.

Posters are entitled to an opinion, but other posters have different opinions. That doesn't make them "ridiculous". Personally, I don't think it was a mistake. The OP told the cashier that they could not tax a gift card, but the cashier did not offer to make a correction. Instead, he made up some bogus claim that it was an activation fee. The OP was absolutely correct, and it clearly says so on the Florida state website. Business owners know what they can and cannot tax. I am not a business owner, but even I know that gift cards are not taxable.